Is it possible to be more bullish? Breadth looking good and price just grinding higher $Study

Around the Globe

    Asia – CLOSED

  • Shanghai (China) -0.38%
  • Hang Seng (Hong Kong) -0.06%
  • Nikkei (Japan)+0.09%

Europe as of 6:46am EDT

  • DAX (Germany) +0.44%
  • FTSE (UK) -0.14%

    Today’s Economic News:


    A couple of auctions today and they are from the USA.

    Quote of the day:
    The most wasted of all days is one without laughter. – e e cummings

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


    Our cumulative NH/NL chart is at all time highs and should be doing that for a while now.

    ES SP500 Futures Comments:

    Short: 1419
    Long: 1390


    We really haven’t moved our sell zone around much, it is the stops that are adding noise to the calculations here, and you need to make room on the upside for surface bubbling.  This train is slowing down but the momentum is huge and it could very easily hit levels that excite more buying and thrust up the the 1440/1450 level.  Technically it should correct in here.

    From the chart below you can see how price volatility has fallen and we have pushed to the top of the upward bull flag we have been putting in.    It is a slow painful dance for the bears as they get swept away at a glacial pace.  That pace leaves a lot of shorts on the table as they remain shorter longer when the momentum is this weak, no one wants to get taken out by just a tick.

    We would expect to see a 2% test in here and that would take us to the 1390 level for a buy area.  The bottom of the bull flag range is currently around 1403, we will call it 1405 for now.  That is an area to watch for waning strength.  Below that is the 1402 area and below that 1400 and then 1390.




    US Dollar DX Futures Comments:

    Sideways chopsticks for the US dollar as we wait for the ECB to do some magic.  Stuck in the 82/83 range and untradeable.


    TLT Twenty Year Bond ETF Comments:

    TLT found some footing and a handhold around 121 levels so that marks a new area of resistance with 125 to the upside.   The downside target remains at 118.50 and the upside is now at 125.


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