1588 is a Mountain High Enough… Looking $ES_F 1588 x 1536

Today's Economic News:

Good numbers out of the UK has the dollar swooning today as Europe is saying, “Whoa there USA, maybe you aren't the lead”.  Watch initial claims, they want to be below the 350K number.

Quote of the Day:
No person was ever honored for what he received. Honor has been the reward for what he gave.
–John Calvin Coolidge

Featured Breadth Chart of the Day:

Bears are getting slobberknockered.  I know.  Is it possible we are going to get a Zweig overbought before we get the oversold we are looking for?  We are gong on 5 months since a Zweig oversold index, that is a very long time, we got overbought mid-January.

Comments and Levels for the Front ES (S&P500 – Emini futures) contract:

Short: 1588
Long:  1536

Yesterday I had to travel to Massachusetts to do final work on selling the house there (did I mention I was selling a house? Inquires welcomed), arrived back at the close and realized I didn't miss anything, well anything as far as the ES was concerned.  TLT stayed heads down also.  We did put on 276 new highs on the NYSE, that is hot.

This market is set up to break higher yet again with the New Highs / New lows indicator hitting 92.6 and low volatility.  That is the MO that gave us our last grind.  For the bear's call, it would be good to see a rush to 1588, maybe even pre-market, and have that stand as the ‘bridge-too-far' where a retreat will be ordered and we see some more of that unsettling selling.  If we do an orderly march to 1588, watch out for same old same old.

Our longer term trender, ‘the fat lady', is attempting to signal a bear switch, but it is once again on the edge, needing a weak day today to keep us this side of bear.  So watch the march to 1588, watch TLT move down, if you get both of those today in an orderly fashion we should be signaling bull on.

The bears need to prove Diana Ross wrong, there is a mountain high enough and it peaks around 1588.

Comments about the Front US Dollar DX futures contract:

What the equity markets lack, the currencies have: volatility.  Overnight, we traced back down to the 82.62 area, we are looking for a nice spiky reversal candle to add long, watching the 82.50 area for buyers.

Comments about TLT (Twenty year Bond ETF):  

Continuing chop… see yesterday's article and the day before that's and…  We are watching closely for a serious pull back indicating a flow back out and into the markets, a serious bet that organic economic growth is underway.  Until that happens, we think the market is climbing on smoke and mirrors.

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Breadth Charts in Full :

Zweig Breadth Thrust:

Our Zweig is in need of exploring below the 40 level to help stir up some buyers and to weed out the good stocks from the bad.

Cumulative Volume Index:

That was a lot of negative volume yesterday.  It begs the question: Was it a 9:1 Up/Down Volume Day?

Number of NYSE issues trading below their 40 day moving average (40DPI):

The 40 DPI is making a nice push downward.  Again, we would like to see the bears get this down below the 20 level for a healthy correction.

New Highs / New Lows ratio chart :

Yeah -fireworks! We need follow-through now and we want some sub-forty prints, or else this is just a test of the bottom of a bull flag.

Trenders :

Short Term Trender -  McClellan Summation Index:

Neutral.

Long Term Trender -  Cumulative 4-week Highs – Lows (the fat lady):

Oh NO!  Fat lady on the edge again!  Bears need to see selling, and soon, to keep this trend indicator on the bear side.

Thank you for Reading –
Marlin aka RedlionTrader @redliontrader

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