A nice sunrise picture as we wait to see which way this market will break.. We are still looking down toward $ES_F 1486 $tlt $study

Good Morning – RedlionTrader's First Call for *|MC:DATE|*

It has been a while since I shared a sunrise photo, it comes up around 6:30am this time of year. You can see the 30 inches plus of snow we received. The wind during the blizzard was so strong that there are areas that are bare and areas buried under 10 foot high drifts, there is absolutely no way to accurately measure the amount of snow that fell, but it was a lot. Scenes like this though make it all worth while.

Overnight Markets:

Morning links:

Asia – CLOSED

Shanghai (China) +0.57%
Hang Seng (Hong Kong) +0.16%
Nikkei (Japan)+1.94%

Europe as of 6:18am EDT

DAX (Germany) +0.24%
FTSE (UK) +0.35%

Today's Economic News:

Overall better news out of Japan and the UK. Eyes this AM on Dragahi. The N. Koreans decided to test a nuke that has shaken the markets a bit in here this AM.

Quote of the Day:
Smooth seas do not make for a skillful sailor.
–African Proverb

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

Today we will feature the Zweig which made a indecisive move neither higher or lower yesterday. The markets are coiled near the highs and holding waiting for an event or excuse to breakout and run.

ES SP500 Futures Comments:

Short: 1520
Long: 1486

We are going to keep the markers the same today. We had been calling for down from 1516 last week, we marked a high at 1517, we think another 4 or 5 point exhaustive move might be in store before we get some real price corrective action. On any quick upside move we would be looking very hard for a sharp reversal downward.

Our downside target remains in the 1486 area for now. The markets remain bullish but we see enough divergence here now to take a stab on the short side, realizing that there might be one more buck left in the bull before we finally see some corrective price action. Turning the ship is a very long and ardent process.

US Dollar DX Futures Comments:

We hit that 80.50 dollar target and took on a little bit of selling this morning back down into the 80.25 area. We want 80 to hold and gather for more upside action. Our next upside target is 80.80.

TLT Twenty Year Bond ETF Comments:

No follow through to the upside yesterday was a bit of a disappointment, we would like to see this puppy run to our 118.50 target to allow us to get some downside equity correction.