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Today's Economic News:

Decent GDP numbers out of the UK.  Today in the US, durable goods and initial jobless claims are set to start the day.  Pending home sales at 10am will need an eye also, this is a recovering sector.

Quote of the day:
Ability will never catch up with the demand for it. – Malcolm Forbes

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

Today we will feature our lead chart, the Zweig breadth index.  This chart is a 10-day average of the NYSE advance/decline line.  There was no follow-through yesterday to the downside on the Zweig.  That makes us believe there is a bounce in the works here.  We think that bounce will fall short and lead to finally breaking that 1400 area in the SP500.

ES SP500 Futures Comments:

Short: 1420
Long: 1397

Tight buy/sell areas today along what is now a double bottom.  We are watching the 1420 area for some indecision that could produce a decent short opportunity.  On the long side, a breakthrough of the double bottom around 1402, we think, could find buyers around 1397.  Overall, we remain bearish for the next few weeks and think that the market is going to do a decent corrective move between now and the end of the year based on our breadth signals.  That does not mean there is not opportunity for bulls, we think there is and one is setting up right now.  It does mean we think the short-term highs are in.

We do have some major news between now and the end of the year so we could turn it around, but for now we think we have run as high as we can without gathering and re-focusing on the economy.

US Dollar DX Futures Comments:

That neckline continues to repel.  It is key to this market falling apart.

TLT Twenty Year Bond ETF Comments:

TLT is rounding the top.  We still think there may be one more push attempt up, which has us cautiously bullish on equities with a nervous eye on the TLT.  Once TLT reverses trend and begins to head toward the sub 100's, the markets will be a-roaring.  We are watching for a possible handle forming on the cup here, if that does form and break out to the upside, you can begin calling Mittens Mr. President as TLT runs to the 135/36 area.

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