Overnight Markets:

Morning links:

Around the Globe

Asia – CLOSED

Shanghai (China) +0.57%
Hang Seng (Hong Kong) +0.16%
Nikkei (Japan)-1.80%

Europe as of 7:59am EDT

DAX (Germany) +0.23%
FTSE (UK) +0.47%

Today's Economic News:

Good news out of China and Europe today.

Quote of the Day:
When all else fails, read the instructions.
–Cahn's Axiom
also known as RTFM (Read The F'in Manual)

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

Our chart of the day is the summation McClellan that we use for trending and it is just starting to roll here, we are scoring the chart as neutral-bullish..

ES SP500 Futures Comments:

Short: 1516
Long: 1475

Not going to change a thing today in the range. If you want to know our thinking read yesterday's and the day before's posts:

http://www.redliontrader.com/market-forecast/sticking-with-a-cap-at-es_f-1516-and-downside-target-1475-study/

http://www.redliontrader.com/market-forecast/we-are-going-to-take-a-stab-at-a-es_f-1516-max-top-and-downside-target-at-1475-study/

This is our chart:

and the other chart:

US Dollar DX Futures Comments:

We would like to see 80 area hold an an attempt to get to that 80.50 target. Good economic news out of Europe makes that a bit harder today.

TLT Twenty Year Bond ETF Comments:

We need the TLT to lift its head skyward now, that 119 target is slowly fading away if we can't get the price to move.

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Breadth Charts In depth:

We continue to watch just a little bit more breadth come off. The afternoon price rally yesterday suggest a possible sideways correction in play, which could resolve to higher prices, we need to keep an eye on a run away train to the upside still.

The Zweig continues to put in a series of lower highs, watch that 50 region.