The markets keep lifting me higher!? $ES_F 1566 x 1551

Today's Economic News:

ISM is the number to watch this morning.

Quote of the Day:
If everybody was satisfied with himself, there would be no heroes.
–Mark Twain

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

The sum of the breadth charts is still quite bullish, but since we are starting a short position in here looking for a stall, we are going to “talk book” a bit looking for those things that reinforce our ideas.  The CVI is one of those.  As we reach back to the highs, we are doing so on lower and lower volume, an accumulation bearish divergence.   That, of course, can correct but for now that should have the bulls a bit concerned.

ES SP500 Futures Comments:

Short: 1566
Long:  1544

Thursday's action has us pushing the upper limits just a bit higher.  We continue to look for waning strength and there are signs, like the lagging Russell and lower accumulating volume, that are indicating that we are reaching higher and higher with a tank that is starting to move to empty… but just how much is in there or if we can do some mid-flight refueling is not clear.   We like the idea of building a short in here but we sure would like to have more conviction imparted via our indicators and they are just not there yet. 

Our lower levels have also moved up, that 1544 area we now see as a strong area for buyers to step back into should this market decided to go to the pits.

US Dollar DX Futures Comments:

We like the hold here at 83.10 and are looking for another run up to the 83.30 area.  

TLT Twenty Year Bond ETF Comments:

This is just another glimmer for the bears as TLT held up pretty nicely in Thursday action. 

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