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Today's Economic News:

Good news continues from Japan, we were worried a little about inflation in Europe, German CPI came in mostly on target, we will continue to keep an eagle eye on inflation.

Quote of the day:
The only thing we have to fear is fear itself, but raptors are pretty dang scary. -  Devin J. Monroe

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

ES SP500 Futures Comments:

TLT Twenty Year Bond ETF Comments:

The new highs / new lows are just perfect here.  It is indicating a possible trend setup for higher. 

Short: 1444
Long: 1418

We are gong to leave the short/long areas exactly where they were y'day.   The markets are attempting to break out to new highs pre-market and we have that destination based on past momentum to the 1444/45 area. 

On the 60 minute below, you can see the inverse Head and Shoulders pattern that has formed the neckline around 1439.  That pattern targets a run to 1456, we think that is possible.  We also think the overnight highs might be the highs for a while.   In other words, we are bullish from our breadth charts, we are bored and tired of being bullish, we are looking for reasons to get short and ignore breadth, we think 1439 is a reasonable high spot for a market reversal, 1444 and 1456.   Patience is the key to this game.  Wait for the prey to come to you.

US Dollar DX Futures Comments:

We wanted that 80 to go and it did.  We thought there might be more of a fight than there was at the pscyh level,  but once through it now becomes the upside resistance, really it is  the 80.25 area that must be watched.    Unless we have a complete meltdown, we should be heading into another consolidation phase.

TLT is usually good for a 2 to 3 day trend.  123 is the new floor and currently pre-market we are down below there.  If TLT behaves like we think it will, it should rally today to the 123.25 area and then fall apart again.  We maintain our downside target at 118.50.

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