Throw Those Reverse Thrusters on… for Now $ES_F 1675 x 1646

Today's Economic News:

No real news today.

Quote of the Day:
If you destroy a free market, you create a black market.
–Sir Winston Leonard Spencer Churchill

Featured Breadth Chart of the Day:

Calling for a short term bounce.

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

Short: 1675
Long:  1646

We are expecting to see more selling this week and more oversold, but first a response message by the bulls.  Eventually we want to see some of those 9:1 down side volume days, but we are unsure if it can happen from here but rather just a bit higher.

We would expect the 1646 area to hold today and then some over-confident bulls and scaredy bears to add fuel to an upside move.  That is pure speculation, of course, so we want to watch the open for support of our theory, ticks and the A/D NYSE line along with Russell 2000.   We want the Russell 2000 to lead the A/D race and NYSE to reverse to the positive side.   We also want to see strengthening ticks.

Our swing downside is now down to 1606.

The close on the MiM was decent on the buy-side volume but the close was decidedly down.  Right now as I write we are just about flat on Globex.  We will be sellers of rallies today.

On the MiM:

The MiM told us there were some big buys on the close but breadth, selling or buying, was non-existent.  The breadth was unable to tip that 66% trigger line, and while there was a 2+point bounce during the close , the overall close was decidedly negative.   We would guess some selling on today's open to complete the close and then a reversal to the up side today.

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Comments about TLT (Twenty year Bond ETF):  

TLT continues to slide as we approach the 100 price.  Our next level down was 102.50.  We would expect this area to hold now as it mirrors the previous bounce of +2.5.  We would expect the same type of bounce here to the 105 area.

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Breadth Charts in Full :

Zweig Breadth Thrust:

Read above on feature chart.

Cumulative Volume Index:

Now we are just starting to see the volume accumulate to the down side.

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

We are seeing the breadth of the selling and it is pretty wide-spread.

New Highs / New Lows ratio chart :

This will make us think we could get a decent short term bounce.

Trenders :

Short Term Trender -  McClellan Summation Index:

Bearish.

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

Bearish.

Thank you for Reading –
Marlin aka RedlionTrader @redliontrader

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