Market Overview

This is the Bull that Never Ends… It Goes on and on my Friend $ES_F 1588 x 1536


Today's Economic News:


The news out of Europe continues to disappoint.  In the USA today, durable goods at 8:30am will give the market a spin on what is so far nearly a flat open.

Quote of the Day:
For greed, all nature is too little.
–Seneca, Roman statesman and author

Featured Breadth Chart of the Day:


We said we would stick with the Zweig index for the week, looking for a pullback to less than 40.  Yesterday shot us in the wrong direction from that, but not enough to get the fat-lady to turn from shorting rally mode, and here is a rally.


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

Short: 1588
Long:  1536


When my kids were small, they watched Shari Lewis's Lamb Chop's Play-along show.  That show would end with
The Song That Never Ends”. It was annoying.  Today, looking over the charts, that refrain popped in my head and I can't get it out. I substitute “bull” for “song” when it repeats in my head.

We have had a 1588 extended target on the charts for a while now, so we are just going to bite the bullet and put our shorting zone there after being run over yesterday by a good 12 points from 1566.  Wowsa… there are too many still trying to short this market and getting scalped.

We are leaving our landing zone at 1536 for now, we need to see a retest to position the lower level if we are to run higher, so that is a very wide swing range established now 1588 x 1538 – nearly 50 points.   We see the market as unstable here, the bulls need to get back into that low volatility climbing mode that is effective in taking us higher and the bears need to rethink.  That 1534 test area is a long ways away now, and getting further.

Our long term trender is telling us to short this rally.


Comments about the Front US Dollar DX futures contract:


We have that 83.06 now on the bull side.  There should be some back and fill, we like it long up to 83.87 with a longer term target around 86.


Comments about TLT (Twenty year Bond ETF):  


Chop, 120/124 range

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Breadth Charts in Full :

Zweig Breadth Thrust:


Bulls making the wait longer.

Cumulative Volume Index:


CVI following price, not much info here.


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


Nice bounce, not much to say here on this chart.

New Highs / New Lows ratio chart :


Back into the 90s… if we want the market short here, we don't want this to settle sideways or else more of the bull.


Trenders :

Short Term Trender -  McClellan Summation Index:


Chart is bearish/neutral

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

We remain under the 15DMA and with the 15 DMA having a negative slope.  That keeps us bearish and in sell-the-rally mode.

Thank you for Reading –
Marlin aka RedlionTrader @redliontrader


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