When breadth says buy the dip you choose your cracker $study

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Asia – CLOSED
• Shanghai (China) -0.70%
• Hang Seng (Hong Kong) -0.43%
• Nikkei (Japan)-1.02%

Europe as of 6:55am EDT

Today's Economic News:

• DAX (Germany) +0.68%
• FTSE (UK) +0.45%

Quote of the day:
Tact is the knack of making a point without making an enemy. – Isaac Newton

Current Allocations from our room: CASH 100%

Performance Month to Date from our room:

Current Breadth Readings:

ES SP500 Futures Comments:

TLT Twenty Year Bond EFT Comments:

Our 4 week cumulative NH/NL ratio turned bullish the other day.  It is the weakest of the bullish trend signals and the underlying index, our NH/NH is right on the cusp on signaling a early end to the run.  We want to watch this indicator closely for a negative close.

Short Zone: 1321

Buy Zone: 1285

All eyes will be on the forming head and shoulders on the ESu contract.  It is a 40+ point move so it will be a decent marker for the next couple of days.  We have put our sell or short zone up at the symmetrical right shoulder which is 1321 area.  For a buy today (assuming it is not hit from a failure at 1321) is 1285 area.

Our breadth is still in the “buy the dip” mode, but it needs a good day to day to keep the trenders from returning to neutral, if we can't rally today, the dip is getting old. 

US Dollar DX Futures Comments:

And, speaking of neutral, we are a little neutral on the dollar with trapped advances to the upside and downside the dollar seems contained in this 82.85 area.  We will watch for a breakout to determine the next move.

TLT is stabilized in the 125 area.  We are expecting a decent move to the upside, but if we are going to rally our way out of here, we would expect TLT to dial it back from here. Just waiting.

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