Quote of the day:
Nothing is so admirable in politics as a short memory. – John Kenneth Galbraith
Current Breadth Readings: (click here to see all our breadth charts)
Our breadth chart of the day is the NHs/NLs which have returned to the 90’s. That needs to hold up in order to keep this rally going.
ES SP500 Futures Comments:
*A special note on 1455
We are in Jenga alert, as a new tower of price is building we are watching the structure underneath to make sure it is stable and sturdy enough to handle the thrust necessary to propel the market into the next orbital. The NH/NLs is the bell-weather indicator here on the top. The other breadth indexes we watch are at much lower levels as we repeat these prices. That is, either fuel for another launch or indication of weakness creeping in.
We are looking for a weaker high getting hit somewhere in here soon, that could be 1462, although I do have to say we were attracted to the 1455 level as a potential exhaustion point.
Looking for a top is as dangerous as trading for a bottom. You have to take it one day at a time. This market can short cover and rally in 10 point moves very quickly.
Heading to Zumba. Have a great day.
US Dollar DX Futures Comments:
Here is our weaker dollar move and we are watching 79 very closely. We think that double bottom will hold and a reversal will be part of the formula for a more protracted correction. That is the plan but it is written in Google Docs, so it can be changed very quickly.
TLT Twenty Year Bond ETF Comments:
The TLT reversal needs to find a hold in the 120 area. If that holds and begins to reverse with lower rates, we think that is another piece of the correction formula.
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