Diamonds still to make a higher high. That has to happen this week.
The DOW 30 ETF DIA still has yet to make a higher high than back at the beginning of May, and sits with what looks like a double top. In order for the blue chip bulls to get some street cred, it is needing to break higher.
We have our 2% correction from last Tuesday’s exhausted high. That correction was just a tad bit deeper than the SP500, but certainly within the parameters of a bull market correction of 1 to 3%.
A little musical interlude.
Around the Globe
- Asia – CLOSED
- Shanghai (China) -1.74%
- Hang Seng (Hong Kong) -0.41%
- Nikkei (Japan)+0.16%
Europe as of 6:54am EDT
- DAX (Germany) +0.25%
- FTSE (UK) 0.00%
Today’s Economic News:
The pessimistic surveys out of Europe are concerning this AM, we would like to see those turn. We have the Dallas Fed at 10:30am ET this morning to start our new economic week off. Those that know are looking for another negative number but better than last.
Quote of the day:
The only good ideas are the ones I can take credit for. – R. Stevens
Current Breadth Readings: (click here to see all our breadth charts)
Today we feature for your amusement the New High / New Low chart. This chart remains in a bullish trending mode, in fact it has improved with its tight winding indicating a continuing trend for now. That could change quickly, but for now the upside continues to deserve much respect.
ES SP500 Futures Comments:
Short: 1424 (double top)
Our SP500 pullback made it to the 2% correction level. Now the question is how fast will it move to the highs (1424.75). We will be watching that 1418 area today, a sort of neckline for an inverse head and shoulders forming. That pattern makes us interested in long setups in the 1404 area. We also have a short interest in the double top region around 1424.
In the USA, Hurricane Issac is causing havoc with the oil rich regions, that should put pressure on oil to drive higher which would put pressure on equities. We will be monitoring this storm which is bigger in size than strength at this point.
US Dollar DX Futures Comments:
The US dollar continues to put in a bear flag for now. We still see 80.85 downside from here and a new wind for the equity markets.
TLT Twenty Year Bond ETF Comments:
TLT is hanging on that 125 area that we think is the bull area for now. Bullish for the equity markets below and bearish above. A sort of risk on/ risk off line in the sand.
>>> Follow us @redliontrader<<<<<
DISCLAIMER: The information and data in the following report(s) were obtained from sources considered reliable. Opinions, market data, and recommendations are subject to change at any time. Their accuracy or completeness is not guaranteed and the giving of the same is not to be deemed as an offer or solicitation on our part with respect to the sale or purchase of any commodities or securities. TTTHedge.com, its officers, directors and its contributors may in the normal course of business, have position(s), which may or may not agree with the opinions expressed in this report. TTTHedge.com, its officers, and directors are not agents, representatives, or affiliates of the CME Group or any trading entity. Trading Futures, Options, and retail off-exchange foreign currency transactions involves substantial risk of loss and is not suitable for all investors. You should carefully consider whether trading is suitable for you in light of your circumstances, knowledge, and financial resources. Any decision to purchase or sell as a result of the opinions expressed in these report(s) will be the full responsibility of the person(s) authorizing such transaction(s). BE ADVISED TO ALWAYS USE PROTECTIVE STOP LOSSES AND ALLOW FOR SLIPPAGE TO MANAGE YOUR TRADE(S) AS AN INVESTOR COULD LOSE ALL OR MORE THAN THEIR INITIAL INVESTMENT. PAST PERFORMANCE IS NOT INDICATIVE OF FUTURE RESULTS.