Today’s Economic News:
Nice PMI numbers out for Europe across the board. I left in Italy and Spain as a look too, those are encouraging.
If you want total security, go to prison. There you’re fed, clothed, given medical care and so on. The only thing lacking… is freedom.
- Dwight D. Eisenhower
Featured Breadth Chart of the Day:
Looky, looky… creeping into oversold here.
Comments and Levels for the Front ES (S&P500 – Emini futures) contract:
Short: 1656
Long: 1618
Here comes another week at us and a new month. We are lowering our targets and getting ready for a bit of a battle on the trend. For now, we don’t think the bulls can get up and over 1656 and the bears need to keep working it down. We are only down 3.5% from the highs, so no celebration yet at the den.
We have that Head and Shoulders marked target at 1602 so that is worth watching .
Update on the MiM. (I am hearing that is going to be the marketing name for the MrTopStep imbalance meter). On Friday, the MiM told us early of a large sell-side imbalance. Still timid about the predictions, the selling from 3 to 3:0pm ET seemed to be satisfying the data. I had been looking to counter trade that period so shorting into the lows was tough, but in fact, that is what the MiM was warning and sure enough, the bears looking to turn the lights out for the weekend accidently threw the switch for the trapdoor instead and the market took a nice Six Flags type run into the close.
That makes three days of strong selling in to the close with decent size. There are some trying to get out, but it is not going into bonds, so where will it be deployed?
The MiM is going pro and you can read more at http://closingimbalance.com/home/. I totally endorse it, and not because I worked on it but because I got to see it work.
Comments about the Front US Dollar DX futures contract:
Looking downside on the dollar now to the 82.77 area for a bounce. Stronger Europe, weaker dollar, and good PMI news from the Euro Zone.
Comments about TLT (Twenty year Bond ETF):
On hiatus.
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Breadth Charts in Full :
Zweig Breadth Thrust:
Looking for 40 here in the next week or so to get the oversold out of the way.
Cumulative Volume Index:
Selling side not so bad.
Number of NYSE issues trading ABOVE their 40 day moving average (40DPI):
Bounce time.
New Highs / New Lows ratio chart :
Bounce time.
Trenders :
Short Term Trender - McClellan Summation Index:
Bearish.
Long Term Trender - Cumulative 4-week Highs – Lows (the fat lady):
Bearish, but we want a bit more work.
Thank you for Reading -
Marlin aka RedlionTrader @redliontrader
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