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Today's Economic News:

Quote of the Day:
A thing is not necessarily true because badly uttered, nor false because spoken magnificently.
–Saint Augustine of Hippo

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

For today, the breadth chart to watch is the 52 Week New High / New Low ratio.  This is the first time we have been below 40 since June!  All those other pullbacks along the way did not hit this benchmark, making this pullback not like the others.

ES SP500 Futures Comments:

Short: 1393
Long: 1354

For the first time, our upper target now sits below 1400.  We think the next change for a capitulation move is in the 1354 area, and as long as we are not getting that Zweig oversold, we favor those lower targets all the way down to 1300.   We would like to see a more peppy rally with an attempt to recapture 1400, which we think would be besieged by sellers seeing it as the last life boat.

It is OPEX week and lot of put buyers and options sellers are taking their profits this week. That puts upside pressure on the market, so the fact that this market is not rallying yet keeps us bearish along with the sentiment indicators.  We are looking for bottom reversal signals, a hold of 1360 would be one, prints above 1390 another. 

US Dollar DX Futures Comments:

Rumor has it that Greece is going to remain in the Euro and that there is another budget passed.  The noise and endless solutions and grim outlooks keep us bullish on the US Dollar and we want that 81.67 to hit and settle for a little sideways in there.

TLT Twenty Year Bond ETF Comments:

We finally hit our 126 area, a little pullback here before 128 would seem reasonable.

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