Playing with Fire, Still Can't Find Those Topping Divergences … Watch $ES_F 1619 x 1583

Today's Economic News:

Nice nice, on the Germany factory order … something is afoot in Europe.  Not much to watch here in the U.S.

Quote of the Day:
Injustice is relatively easy to bear; what stings is justice.
–H.L. Mencken

Featured Breadth Chart of the Day:

This chart, we all know, says grinding higher, those kind of 4- and 5-point-higher days.

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

Short: 1619
Long:  1583

How simple is that?  I am leaving the chart alone from yesterday, but note that the market is still hot hot hot as we open near the highs today and that gives us lots and lots of opportunity to smell out any weakening breadth which you can do by watching ticks day over day or new highs on the NYSE or by watching the A/D lines compared to yesterday; on the other hand, we could break out and run in which case we will have yet another sell zone speared through by the market that continues to be unbridled, which is why we are watching 1619 for a hold and 1583 as a downside target.

Sell Zone: 1599.75 –> 1621.75
Buy Zone: 1533.75 –> 1554

Comments about the Front US Dollar DX futures contract:

We are flat the DX and evaluating for the future moves, a little doubtful on our 86 bullish call now as Europe starts to heat a bit.  We want to watch the 82.05 area for a hold and then for a move above 82.50, which would target the 82.80 area.

Buy Zone: 81.65 –> 82.05
Sell Zone: 82.84 –> 83.24

Comments about TLT (Twenty year Bond ETF):

We like a buy here on the TLT up to the 123 area.

Buy Zone: 120.07 –> 121.20
Sell Zone: 123.45 –> 124.58

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Breadth Charts in Full :

Zweig Breadth Thrust:

Just playing around in the overbought arena.

Cumulative Volume Index:

Reaching higher, no divergence showing yet.

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

A/D lines were down a bit (that shows up on the Zweig) but breadth-wise there was a decent frontal movement.

New Highs / New Lows ratio chart:

See comment above, else no comment.

Trenders :

Short Term Trender -  McClellan Summation Index:

Bullish:

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

Look how bullish this indicator has turned.  Wow.

Thank you for Reading -
Marlin aka RedlionTrader @redliontrader

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