Bear? Bull? How about Boring! Watching $ES_F 1396 still think there is another run left for the bull $study

Around the Globe

    Asia – CLOSED

  • Shanghai (China) -0.74%
  • Hang Seng (Hong Kong) +0.42%
  • Nikkei (Japan)-1.43%

Europe as of 6:14am EDT

  • DAX (Germany) -0.17%
  • FTSE (UK) -0.36%

Today’s Economic News:


Lots of news pre-market in the USA, mostly not so good.  We have circled one good spot and that is the reduction in Italian yields. That interest rate relief is a good sign of fear easing.  

Quote of the day:
They are ill discoverers that think there is no land, when they can see nothing but sea. – Sir Francis Bacon

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


Not much to see on the CVI breadth chart.  The divergence is still there and the obvious lack of momentum, but as the whole the market is staying together, there is no “underneath” falling apart that would cause us to sound a bear alarm yet. 


ES SP500 Futures Comments:

Short: 1424
Long: 1396

We moved our landing pad down just a bit to that 1396 area.  1400 should serve as a psych level.  We are all looking forward to ending the summer and getting the volume back and the end of the year positioning volume to come back into the markets.  In the meantime we are just drifting around between –2% from the high and the high of 1424.75.

The market is holding together as far as breadth is concerned.  The low volume has us concerned as any big news or a shift of sentiment might not find enough liquidity on the other side to dampen the volatility.  Right now we sit in an uncomfortable balance near the highs of the year.   That needs the bulls to support or else.

We remain bullish based on the strength of the breadth.


US Dollar DX Futures Comments:

If you think trading the SP500 futures has been boring, the last 6 days of the dollar have been almost a straight line.  This market needs to break to the downside.  


TLT Twenty Year Bond ETF Comments:

TLT right on our 126 line is looking like hanging fruit.  We are positioned for failure here on the TLT, that will propel the next leg up.


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