New Highs, Weak A/D Line… Looking at $ES_F 1700 to Stall the Market

Today's Economic News:

Not much in news today around the globe.  In the US, house price index and consumer confidence should be market stimulants.

Quote of the Day:
To cease smoking is the easiest thing. I ought to know. I've done it a thousand times.
–Mark Twain

Featured Breadth Chart of the Day:

Continue to note the lower Zweig and higher prices.  That divergence will turn.

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

Short: 1700
Long:  1684

The grind continues to the upside.  We have a decent inverse Head & Shoulders in place that we have marked out with our lipstick crayon and we have it pointing to the destined 1700 area.  We will watch that play out with some expected turbulence in the 1997 area.  I think today's news might be a factor in these numbers.

The A/D lines continue to get weaker, but those quality stocks are still being bought as is the S&P, hence new highs. The NYSE put in 323 new highs yesterday.  Very strong.   We would like to see a test a of the 1684 area soon. 

That is what we will be watching today.

On The MiM

Again, the MiM gave us a strong buy signal, but the market did not follow through and it did do a nasty shake in the middle of the close.  HRH Princess Kate had the inconvenience of birthing another royal during the close.  I am not sure if that triggered the news arbitrage machines, if people left their posts to check out the news or what, but we did get an annoying spike down.

I entered long a bit early and had to ride the tower of terror for a few minutes.  Once stabled, I did add and effective broke even on my first lot (made .25) and then a couple on the second.

You can see from the chart that the best trade was the Kate trade short, the best long was to wait for the close to absorb the buying.

We did some work overnight to make the MiM just a bit more mobile friendly, you might want to test that out and explore the menus as we have added more features.

Don't miss the Webinar this Saturday.  You will be able to talk directly to those collecting the data and to me presenting the data.  It will be a learning experience for everyone.  I can't wait to hear the questions.

Sign up at: http://mrtopstep.com/ghangout/the-mrtopstep-imbalance-meter-own-the-close/

Comments about TLT (Twenty year Bond ETF):  

We are watching for 110 and the gap close, that means 108.75 needs to hold.  That should get a test today.

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Breadth Charts in Full :

Zweig Breadth Thrust:

Bearish Divergent.

Cumulative Volume Index:

Bullish

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

Bullish

New Highs / New Lows ratio chart :

323 new highs on the NYSE and we get a bit of weakness, that means we pick up some new lows.  Worth watching.

Trenders :

Short Term Trender -  McClellan Summation Index:

Bullish.

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

Bullish.

Thank you for Reading –
Marlin aka RedlionTrader @redliontrader

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