Market Overview

We Are Just a Slight Bit Less Bullish Now, Looking For Little Steps, Like to $ES_F1418

Around the Globe

    Asia – CLOSED
    • Shanghai (China) +2.87%
    • Hang Seng (Hong Kong) +2.16%
    • Nikkei (Japan)+0.39%

Europe as of 7:31am EDT

    • DAX (Germany) +0.27%
    • FTSE (UK) +0.20%

Today's Economic News:

image

We had some red numbers out of China and the UK, but not bad, and the Service PMI numbers came in good, so a wash overall.  We like the higher rates on the German 2-year and the markets overseas right now can be painted a pale green.

Quote of the Day:
It is not the size of the dog in the fight, it is the size of the fight in the dog!
–Anonymous

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

image

While we remain bullish and expect to be at 1431 in the not too distant future, it is this breadth chart that we watch that gives us concern.   That right arrow should be higher than the left.  This index is the cumulative volume index and it is telling us that we have not accumulated back all that volume from the bottom, setting up a negative divergence. In other words, we need buyers to come in and push this market higher.  They are sitting on the edge of a cliff with their feet dangling over waiting for the fun to start.

 

ES SP500 Futures Comments:

Short: 1418
Long: 1397

 

Yesterday, we had such lofty goals all the way up to 1431, today we are beaten back a little and moved the upside area to look for shorting to 1418.  On the downside, we like the 1397 area as the bear / bull battle is expected to continue today. 1418 for us is that line and we are below that.  Should we break out, we would expect TLT and the dollar to be behaving.  Currently, they are not, particularly the TLT.

image

 

US Dollar DX Futures Comments:

We want the US Dollar to stay below that 80 level as it considers this move down. 

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TLT Twenty Year Bond ETF Comments:

There is an awful lot of manipulation and money going into bonds to keep the interest rates low, it is frustrating.  It should be stimulating, but we haven't seen that effect yet.  We are still holding stubborn to our 122 area. 

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Posted-In: News Forex Global Markets Trading Ideas

 

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