Market Overview

The Fat Lady Has Sung, and that Makes us Both Sad and Bearish From Here $es_f 1510 x 1474

Good Morning – RedlionTrader's First Call
Overnight Markets:

Morning links:

 

Around the Globe

 

    Asia – CLOSED
    • Shanghai (China) +0.87%
    • Hang Seng (Hong Kong) +0.25%
    • Nikkei (Japan)-1.27%

Europe as of 7:23am EDT

    • DAX (Germany) +0.31%
    • FTSE (UK) +0.26%
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Today's Economic News:

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Numbers from Europe continue to be somewhat schizo, particularly out of the UK.     In the US Ben continues to testify today and we get durable goods number out pre-market that need to be watched.

Quote of the Day:
A court is a place where what was confused before becomes more unsettled than ever.
–Henry Waldorf Francis

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

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Here is the news from the RedlionTrader Breadth land, the fat lady has sung.  That puts us in the bear costume until we get a secure cross to the other side.  We think there is a bit of upside to still play out, but that bearish conditions lie ahead.

ES SP500 Futures Comments:

Short: 1510
Long:  1474

Well it is official for us and we will be building a longer term short position as the market gains here.  We think we could get 1510 on the top reach and maybe even up to 1540 area, so we have to keep some powder for a market that we think has now signaled a roll.   That means legging in ever so lightly until we build up confidence.

On selling we see 1474 as a pause point along the way.  For our over all bear rollover we haven't setup targets yet, but we can see 8-10% off which would take us down to 1377

 

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US Dollar DX Futures Comments:

Running wicked late today.  81.40 x 82.15 is our target area. 

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TLT Twenty Year Bond ETF Comments:

We are a bit braver with the TLT and are looking in the 120s now for pricing to the upside, some correction here but we think the market has downside potential and TLT upside.

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Breadth Charts In depth:

I get accused of having a bullish bias, which I do, so when I get bearish it feels unnatural, like a costume.. So I am trying to get the bull horns into this silly bear head, it is tough but the fat lady trender tells me it is time.

Two nice bounces for the Zweig, we think there is still a bit of upside in the current cycle, then we expect it to turn decidedly bearish.

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Nice bounce on the CVI, they are still buying here:

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Bit of a bounce of the 40 DPI:

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That is a bit better and we expect to see on the NH/NL.. we feel much better bearish now:

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Our Early trender has been bearish since mid-February:

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And now the fat-lady has sung and turns bearish.

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The following article is from one of our external contributors. It does not represent the opinion of Benzinga and has not been edited.

Posted-In: Forex Markets Trading Ideas

 

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