Market Overview

Sliding Higher Our Upside Yet Again $ES_F 1523 x 1486.. Poking Around for a Reversal


Around the Globe


    Asia – CLOSED
    • Shanghai (China) +0.57%
    • Hang Seng (Hong Kong) +0.16%
    • Nikkei (Japan)-1.04%

Europe as of 6:58am EDT

    • DAX (Germany) +0.40%
    • FTSE (UK) -0.12%

Today's Economic News:


We like those industrial production numbers out of Europe and so does the Euro today.  In the USA we have retail sales to set the pace pre-market.

Quote of the Day:
Imagination is everything. It is the preview of life's coming attractions.
–Albert Einstein

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


The Zweig has not resolved either up nor down and remains in a tightening wedge.  Today we will show the new highs/ new logs that have just been dreamy since the beginning of the year. That lower channel region has is showing some downside for the first time in about 30 days of trading, so we want to watch this trend.. it should lead to increased volatility and we would all like that.  


ES SP500 Futures Comments:

Short: 1523
Long:  1486

We find ourselves caught in the top calling game that we spend so much time trying to avoid. We are trenders. First we thought  1516 than 1520 and now 1523.  The one thing we are missing is a frenzied rally to that high spot, a rally with a series of 1K ticks, so far it has been a controlled climb and those are much harder to turn as they need to dome over in an arc rather than a peak.

So for today we are looking for a frenzied buy and move to the 1523 area to exhaust and give us some downside movement, but like a hunter in a tree stand, we are not sure that our prey will come our way today.  We remain looking for a pullback into the 1486 area, patiently.




US Dollar DX Futures Comments:

I can't get a DX chart to show up this morning so we will re-post yesterday's and tell you where we are.  If I had the last 24 hours on here you would see a big red bar down below 80, to 79.93 now.  The Euro is on a run and the dollar is in danger of reversing to the downside.  We have both the Euro and Dollar at key resistance here. 

Our target on the dollar remains 80.80, but that is going to require a change in wind direction which might take a while.  We will watch our 79.78 area for a hold, although the break of 80 has us concerned.


TLT Twenty Year Bond ETF Comments:

We remain disappointed in the inability of TLT to make that upside move.  We have the 115 area marked out for a hold and an upside target of 118.50.


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This market is not ready to top yet. Despite our best efforts to try and call a stalled reversal, we keep just chewing higher with tight tight pullbacks waiting for the game clock to run out, except we can't see that clock.

We thought one day more and we would get a break on the Zweig, looking for either a higher high or a lower low.  We got  Neither and remain stuck in no mans land:



We did get a breakout on the CVI which is quite bullish:


Our 40 DPI continues to diverge:


We have our largest move down in the NH/NLs in a long time:


Our McClellan trender is back to bullish:


and the Summation New Highs/Lows remains stubbornly bullish:


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