Knocking on 1700 $ES_F, anyone home?

Today’s Economic News:


Not such happy news today for Asia and China and Japan closed down about 0.5%.  It is a different story in Europe and the markets there are up a percent. You can see the difference in the data above.  It’s all about the PMIs and the European one is improving and marched past the 50, the demarcation between expansion and contraction.

Quote of the Day:
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–Fuzzel Fish Administration Page

Featured Breadth Chart of the Day:


Despite a lack luster day yesterday, the NH/NL chart is telling us that there is plenty of bullish optimism.  I still would not be shorting this market, at least not yet.


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

Short: 1700
Long:  1684


We still think that 1700 is in the cards and here we are playing around 1693 again. PM numbers are the news of the day and the USA’s will be out at 9:00 am ET.  That should set an opening mood.  We are seeing increasing weakness on the closing imbalances, but those new highs… someone is buying.  That buying is going into lower risk as the N100 and the R2K lead the downside team yesterday as far as A/D lines go.  The NYSE managed to close at 1.3:1.  Positive at least.  We just think this market right now is too hot to short but that could change with an overreach by the bulls.   We expect to see 1684 tested at some point soon.


On the MiM:


On Monday we had a decent size buy side imbalance, Tuesday it was a small sell side.   For those that went in, the trade was from the top of the hour to just before closing where we did a bit of a bounce.  If you timed it perfectly you could have taken 4.  I went in around 3:20 and managed to take a couple before closing out on what I saw as a weakening sell side imbalance.   Only the last few minutes of the day gave an opportunity for the buy side.   Today, we will watch the close again to see if this sell side begins to build as a trend.


Comments about TLT (Twenty year Bond ETF):  


So far our 108.75 is holding in principle.   Let’s see if we can’t get some momentum going for a reach to the 110 area.

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Breadth Charts in Full :

Zweig Breadth Thrust:


The decrease of the Zweig is slowing.

Cumulative Volume Index:


We remain accumulating on the positive side, though.  That is bullish.


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



New Highs / New Lows ratio chart :


Very bullish.

Trenders :

Short Term Trender –  McClellan Summation Index:


We have the chart continuing bearish:

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


Thank you for Reading –
Marlin aka RedlionTrader @redliontrader


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