Good Morning – RedlionTrader's First Call
Overnight Markets:

Morning links:

Around the Globe

Asia – CLOSED

Shanghai (China) -0.35%
Hang Seng (Hong Kong) -0.00%
Nikkei (Japan)+0.53%

Europe as of 7:03am EDT

DAX (Germany) -0.37%
FTSE (UK) -0.01%

Today's Economic News:

We continue to get mixed messages out of Europe on the economy. We don't like the rise on the short end of interest rates as that indicates some fear returning.

Quote of the Day:
Life is not an exact science, it is an art.
–Samuel Butler, the younger

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

Just last week we were calling for a breadth oversold move as we have been missing one of those, well that proved 100% wrong as we are now heading to overbought. That missing oversold though does not go un-noticed.

ES SP500 Futures Comments:

Short: 1551
Long: 1527

This market is bullet proof. Sequester woes, QE easing woes, European recession, Italian government and add to that the headwinds of higher dollar and interest rates and the market just climbs higher finding hand holds in this wall of worry. Each day buyers are cranking the handle of our jack-in-the-box.

Friday saw a little bit of action on “too-good” jobs number and we thought, here we go we finally got something going downhill. Buyers came in and pushed that little 0.5% correction right back up and held all day long.

Here is what I saw on the TIcks on Friday. I saw a lot of inventory being offered up and a lot of anxious buyers bidding and holding and taking the inventory on the ask. That almost perfectly balanced market of sellers chumming the waters and buyers eating it up kept the market flat. That could be seen in the +400/-200 tick range we stuck in for most of the afternoon with buyers 2:1 buying on the ask. A market can not fall with that that of action of bullish action.

For today we are looking to see if we can bid ‘em up higher. The world did not hand off a particularly bullish baton to us to run with this morning and we find ourselves just a bit short of the Friday close.

We think any good run will be stopped in the 1551 area and that maybe it is time for a 1%'er at least down the 1532 area. We are just a little under that today for our buy zone at 1527 with the idea that a 1% pullback might be too gleefully played and push down to that area.

US Dollar DX Futures Comments:

Third stage rocket just fired off on the dollar hitting an 83.07 area target we have, next up for us is 83.22 although we think 82.70 might need to be shown a little respect. The intervention to weaken the Euro is underway and the dollar is eagerly taking top spot. At some point that will has its effect on some of the USA internationals.