Watching the $ES_F head and shoulders, Should be fun $study

Around the Globe

Asia – CLOSED
• Shanghai (China) +1.27%
• Hang Seng (Hong Kong) +0.82%
• Nikkei (Japan)+0.60%

Europe as of 6:39am EDT

Today's Economic News:

• DAX (Germany) -0.29%
• FTSE (UK) +0.05%

Quote of the day:
There is no such thing as “fun for the whole family.” – Jerry Seinfeld

Current Allocations from our room:

Performance Month to Date from our room:

Current Breadth Readings:

ESu SP500 Futures Comments:

TLT Twenty Year Bond EFT Comments:

The breadth chart to watch today is the CVI which is currently setup as a bearish divergence.  It needs to put in that higher high and join the family of other breadth charts that are bullish for the most part .  There is a lot to do today for the bulls, but mostly it is about advancing price and defending price for the bulls.

Sell Zone: 1325

Buy Zone: 1285

Speaking about advancing price, the market is sitting on the top of a  right shoulder of a head and shoulder pattern and just breached into our sell area from yesterday which we have now nudged up to 1325 today.  The bulls need to hold here for a day or break through.  I will draw in my head a line at 1305. Selling below that will put the breadth charts into jeopardy or slipping further bearish.

Although our buy area sits below a broken neckline on a 40 point head and shoulder, we are still going to  watch the market for long at 1285 should we get there.   The market has been pivoting around   1313 for the last few days, the bulls need to find that gear to advance the price, else gravity will return us back below 1300.

Watching the Head and Shoulder today and TLT 124.50.  If that breaks we should start upside resumption.

US Dollar DX Futures Comments:

The US dollar is stuck in the twilight zone.  82.10 to the downside and 83.20 on the downside.  A break of those areas should setup the next trend.

124.40/124.50 – Watching the TLT very closely here for a break.  We like the downside, especially on a break and hold below the 124.40 area. We have a short term target down to 123.

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