Monday OPEX Cleanup, Seasonally Strong… We Like Up $ES_F 1380
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Today's Economic News:
Light on news today. Watch those existing home sales numbers @ 10am EST.
Quote of the Day:
Victory is always possible for the person who refuses to stop fighting.
Current Breadth Readings: (click here to see all our breadth charts)
A Zweig Breadth Thrust countdown has officially begun. Today will be day 1. If by day 10 we can get a reading above 61.5, we would have a very high probability of another long bull run. We are doubtful and think that this Zweig will fall back to earth (below 40) in the not too distant future. Than a re-launch that would take us to a higher orbit. But the count has begun.
ES SP500 Futures Comments:
We like this gap up today. We actually wanted a little bit bigger, as the larger the gap, the larger the trap. If we could get +10, that would force a lot of shorts out and scare some bulls back in that think they may have missed the bottom. That would get us a long way toward our goal of 1400 before this market decides to test that bottom again.
We think 1380 marks the top over the next couple of days and is a decent area to short, at least on a short term basis. On the downside, should we test and probe 1348, we think there are enough buyers around now to support the market from there.
It is still a negative news cycle: war,cliff, and austerity; but corporations adjust and move forward and that is what drives the markets.
US Dollar DX Futures Comments:
The fact that the Dollar can not get a rally going has us a little bullish on the markets right now. Watch that 81.30 area for a break. If it does, we are going to see the market lows again.
TLT Twenty Year Bond ETF Comments:
TLT is slow to turn, but we think it is happening, and 124 is in the crosshairs. Watch today for bond weakness as money comes back into the promise land of QE and backstops.
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