Around the Globe

Europe as of 6:32am EDT

• • DAX (Germany) -0.14%
  • FTSE (UK) +0.45%

Today's Economic News:

Small calendar today, factory orders out of Germany were a miss, but certainly an improvement over last read.  Again we like the rising of short term interest rates, glad to see those negative rates go away. 

Quote of the Day:
If at first you don't succeed… make sure nobody finds out you tried!
–Unknown

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

Our breadth chart of the day today is the Zweig with its increasingly divergent A/D values as the SP500 index  prices increase along with volatility.  We are thinking this third attempt at new highs has an increasing chance of failing over the next few days improving the odds to some greater downside action. 

ES SP500 Futures Comments:

Short: 1516
Long:  1475

Not sure if we are bored, want to be famous or if we are reading the charts correctly.  Let us first note that the upside trend remains intact. This is a very bullish market.

There is a price pattern here, a 3 top pattern that I call the XYZ pattern.  It confirms on the break of the lowest valley which is about 1490.50.   To put the Z top in we would like to see the high stay below 1516, a break above that and we could be thrusting into another bull leg higher, even on divergent breadth data.

Our downside target is scaled off the most recent high to low valley and targets the 1475 area which is about 2.5% back from the high which is in our model's framework and keeps the bullish trend intact for another attempt higher.

We are going to stand out today and call for looking to establish a bearish position on this market below 1516, we could be smarting tomorrow.

US Dollar DX Futures Comments:

To further our case we like the dollar higher as we head into the European economic summit which should be full of news.  We have a current upside target on the dollar to 80.50. 

TLT Twenty Year Bond ETF Comments:

Like the dollar we continue to like the TLT to the upside from here into the 119 area. 

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