Safe Labor Day EVERYONE.. Bulls and Bears looking for a rest, watching $ES_F 1410

Around the Globe

Asia – CLOSED
• Shanghai (China) -0.74%
• Hang Seng (Hong Kong) +0.42%
• Nikkei (Japan)-1.43%

Europe as of 6:14am EDT

Today's Economic News:

• DAX (Germany) -0.17%
• FTSE (UK) -0.36%

I am not sure if it is because I am tired today or if the news looks worse, but the news out of Japan and Europe seems to have a weakening feel to it.  The market is up +8 on a gap overnight so the bad news must be market friendly.

9:45am ET (9:42am for those that can spend the money for early access) is the Chicago PMI.  Next big number today will be factory orders at 10:00am.

Quote of the day:
Did you ever walk into a room and forget why you walked in? I think that's how dogs spend their lives. – Sue Murphy

Current Breadth Readings: (click here to see all our breadth charts)

Bulls lost their 2nd trender as the Cumulative 4 Week NH/NL finally, out of frustration on a lack of upside, fell neutral. On this chart we will watch the cross of the 15DMA closely, that was our signal of a market short in April.

ES SP500 Futures Comments:

Short: 1421
Long: 1396

The market has double bottomed now at that 1396 area and pre-market USA we find ourselves up 9 ES handles.  We will watch that run to the 1410.50 area to see if there is any poke through momentum from the lower high trendline established.   If the downside trend is broken, next up on the screen will be 1412 then 1416.  Those breaking today would be a very strong day indeed.  Suffice it to say our short area today is 1421.

The Bernanke speaks today and that will steer the markets and volume and remove a choke collar that has been on the market for the last couple of weeks.   The ECB will have their turn next week and then the markets will run into the US election.

On the downside, the place to watch is the 2x bottom at 1396. Should that bottom be a false bottom our next target down would be 1390.

US Dollar DX Futures Comments:

It is test day today, watch 81.25 for a break.  Should that happen the equity market will have news to run to recent highs..

TLT Twenty Year Bond ETF Comments:

Failure here is what the bulls need.   We have our lonely downside target at 118.50.  The bulls need some higher interest rates indicating risk on.

>>> Follow us @redliontrader<<<<<

DISCLAIMER: The information and data in the following report(s) were obtained from sources considered reliable. Opinions, market data, and recommendations are subject to change at any time. Their accuracy or completeness is not guaranteed and the giving of the same is not to be deemed as an offer or solicitation on our part with respect to the sale or purchase of any commodities or securities. TTTHedge.com, its  officers, directors and its contributors may in the normal course of business, have position(s), which may or may not agree with the opinions expressed in this report. TTTHedge.com, its officers, and directors are not agents, representatives, or affiliates of the CME Group or any trading entity. Trading Futures, Options, and retail off-exchange foreign currency transactions involves substantial risk of loss and is not suitable for all investors. You should carefully consider whether trading is suitable for you in light of your circumstances, knowledge, and financial resources. Any decision to purchase or sell as a result of the opinions expressed in these report(s) will be the full responsibility of the person(s) authorizing such transaction(s). BE ADVISED TO ALWAYS USE PROTECTIVE STOP LOSSES AND ALLOW FOR SLIPPAGE TO MANAGE YOUR TRADE(S) AS AN INVESTOR COULD LOSE ALL OR MORE THAN THEIR INITIAL INVESTMENT. PAST PERFORMANCE IS NOT INDICATIVE OF FUTURE RESULTS.