Friday's Close Will Tell a Story, Last 3 Days Had Sells, But you Couldn't Tell from Price (Until the Next Morning) $ES_F 1693 x 1666

Today's Economic News:

Yeah! Inflation in Japan.. all green there.  Didn't show up on the import prices to Germany though.  Today in the USA watch how Michigan thinks.. won't they be a bit depressed over Detroit?

Quote of the Day:
That's right. ‘Tain't yours, and 'tain't mine.
–Mark Twain
(when friend said that a certain rich man's money was “tainted”)

Featured Breadth Chart of the Day:

I have put up the longer term trender as our highlight chart today to remind us that this market is still very strong and bullish.  We are only off 1% from the highs.

 

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

Short: 1693
Long:  1666

We are watching the ATR move slowly above 3 as the market is picking up volatility.  There is danger in both directions as this market can take to the wind in either way.  Quickly and brutally.    The breadth is still very bullish and should the sideline bulls think 1% is good enough to get back in, we could be seeing new highs, even today!

Directionally we are weakening, lower highs and weak Zweig tells us that, but there is a trip line that will bring in the buyers who are anxious to be back into the game.  Watch that 1670 if we get there today for a hold.  Any signs of a decent hold should see a nice recovery rally.  Watch the MiM today as we go into the close.  We have had selling for the last 3 days, albeit yesterday was weaker selling.

 

 

On the MiM:

MiM oh mania!  I guess the webinar for Saturday has been canceled due to technical reasons.   On the meter side, the market was strong into the close as the +5 gain from for the last hour tells.  The MiM was on the negative side but not really with any size until we got close to the end and there was a bit of a push down around the reveal (3:45pm ET) it was not really tradeable.   So we reset and watch the Friday closes, which are even more important.

It does appear that the close continues to get squeezed via shorts as the overnight continue to follow through to the direction of the MiM.

Comments about TLT (Twenty year Bond ETF):  

Still liking that 110 area from here.

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Breadth Charts in Full :

Zweig Breadth Thrust:

Bulls need to follow through with a 2nd return from negative yardage at the start.

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Cumulative Volume Index:

Not much to see there.

 

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

Small pick up no real information here.

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New Highs / New Lows ratio chart :

New Highs / New Lows still not quite recovered . The NYSE did 163 new highs yesterday, that is still above our arbitrary 100 we think about when we think about weakness.  I don't think the bulls are done yet.

 

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Trenders :

Short Term Trender -  McClellan Summation Index:

Bullish

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

Bullish

Thank you for Reading –
Marlin aka RedlionTrader @redliontrader

 

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