For today it is the fat-lady, our longer term trender that has turned a bit useless with this market, wavering around our trigger line for over a month now.  It the the accumulation of new highs and lows and it is warning us that we are not pushing higher on new highs, in fact we are flat right now.  That doesn’t mean we can’t correct and get a push out of this area of highly volatile chop, but the market is fighting increasingly harder to just maintain.

Economic News:

While the German trade imbalance is nice for Germany, their industrial production number is moving the wrong way and we are shedding some investor confidence (ECB rate adjustments can do that for you).

In the USA today it is auctions and actions from the Fed speak that everyone will be watching.

Quote of the Day:
When something can be read without effort, great effort has gone into its writing.
–Enrique Jardiel Poncela

Comments and Levels for the Front(S&P500 – Emini futures) contract:

Short: 1814
Long: 1771

Our ranges keep spreading as we put in these thrusts but don’t take any real directional moves.  For today, the bulls need to prove their commitment and hold or move higher while the bears have to dust themselves off and remind the bulls and the market why a 2%+ correction would be a good thing.

On the downside we are flashing 1771 as an area of interest, on the high side an 1814 touch would have us looking for another short.

On the MiM:

We continue to get those kind of no harm, no foul MiMs.  On Friday we took a ride and squeaked out basically flat. There was money there for getting off on an earlier station, but for the month of December I am trying to exit on the close to gain some muscle memory, so we watch the profits evaporate and in fact the best trade on Friday’s MiM was a counter-trend trade.

I am still amazed that 5 days into December we have 4 strong MiMs already.  All sells.  Watching and waiting for our turn to met some nice gains but you think we would lose some activity in this next week.

This is our first time riding through December so there is a lot to watch and learn this month as we bring the year into the close.

* – NFP Day before and day of.

If you want to join the meter readers you can go to: Join the MiM 

Comments about TLT (Twenty year Bond ETF):

Those higher rates didn’t last long on TLT as they were quickly brought back up to above that 102.25 area.  It will take continued good economic news and reports of tapering to get the next leg down to really stick.  That means a fight in there that could take us as high as 104.25.

>>> You can follow me on Twitter  @redliontrader <<<<<

Breadth Charts in Full:

Zweig Breadth Thrust

The Zweig, despite a bad couple of days, continues to flag in here.

Cumulative Volume Index:

Markers in for the CVI as we wait for a breakout.

Number of NYSE issues trading ABOVE their 40 day moving average (40DPI):

Nice bounce on the 40 DPI but nowhere near the highs that prices suggest.

New Highs / New Lows ratio chart :

Bounce.

Trenders

Short Term Trender -  McClellan Summation Index:

Bearish.

Long Term Trender -  Cumulative 4-week Highs – Lows (the fat lady):

Neutral…

Parting Shot:

It was the start of Christmas in Kennebunkport, Maine, last Friday as hundreds gathered in the town square to count down from 32 (the number of years they have held their annual Christmas Prelude) to see the tree lighting.  A great weekend for the town as these annual weekends (continues next weekend) have become the busiest days of the year.

Thank you for Reading –
Marlin aka RedlionTrader @redliontrader