Ice Cream Castles in the Air, time to watch out for the Clouds $Study

Around the Globe

    Asia – CLOSED

  • Shanghai (China) +0.85%
  • Hang Seng (Hong Kong) +0.07%
  • Nikkei (Japan)-0.57%

Europe as of 7:00am EDT

  • DAX (Germany) -0.53%
  • FTSE (UK) -0.14%


    Today’s Economic News:


    OK business climate report from Germany and good loan number from Europe, but it was the numbers out of Spain and Ireland that caught our eyes this AM.  Nice rate reduction in Spanish Bonds (wonder who is buying them?) an a nice move in Ireland retail sales.   A turning ship?  Home prices 9am ET and Richmond MFG and Consumer Confidence will drive our day.  

    Quote of the day:

    Old age is like everything else. To make a success of it, you’ve got to start young.
    Theodore Roosevelt

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


    Since our overall read is bullish from the breadth charts, we want to watch the weakest chart which is the 40 DPI, the percentage of stocks on the NYSE that are above their 40 DMA.  This index has been divergent from the market for a while and sits at a point of making lower lows. 

    Notice however, on the March top for the markets how this indicator deteriorated much earlier than did price.  We think we are in that phase of the market.


    ES SP500 Futures Comments:

    Short: 1421
    Long: 1401

    Our Zones are squeezing together as the market struggles at the top. We can look at both sides now from up and down and still somehow, its bulls direction we will call, we really don’t know bears at all.

    We do think this current struggle resolves to the upside based on the current trend and where we are in that cycle and what the breadth charts are telling us.  The gamble in here is a disappointment from the Jackson Five.   We do think you can play this market up and down, but we prefer up and the close we get to 1395 the more we like up.



    US Dollar DX Futures Comments:

    The dollar should test the 81 area here in the next couple of days. We are watching for  some movement today. 


    TLT Twenty Year Bond ETF Comments:

    TLT is up above 125.  We have raised our line in the sand to 126 area.  We think TLT will fail around that level.



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