Looking for $ES_F 1352 to short and 1322 to go long $study

Around the Globe

    Asia – CLOSED

  • Shanghai (China) -0.60%
  • Hang Seng (Hong Kong) -1.15%
  • Nikkei (Japan)+0.23%

Europe as of 5:41am EDT

  • DAX (Germany) -2.16%
  • FTSE (UK) -1.76%

Today’s Economic News:

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Interest rates continue to fall as investors seek safety.  We can not resume our rally until that breaks.

Quote of the day:
The only time people dislike gossip is when you gossip about them. – Will Rogers

 

Current Allocations from our room:

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Performance Month to Date from our room:

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Current Breadth Readings:

 

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This chart printed on Friday pre-market was a neutral, but the follow through with Friday’s trading has us back to bear readings for both of our long term trenders.  We would like to see selling today and a Zweig reading below 40 for tomorrow.

 

ES SP500 Futures Comments:

 

The world continues to want to sell into the summer and so far the USA bulls have not capitulated.  We would like to see that in order to begin the bottom building process and resume to the upside.  Our target area for the downside is 1322 where we will be going long.  Today we think should a rally happen the 1352/55 area should exhaust it, so we want to be short in that area.

 

Breadth continues to question all rallies, it does show, however,  that the US market is more reluctant to sell than the rest of the world, but the afternoon selling into the overnight markets is a frustrating pattern for the bulls trying to turn the ship.  Once that overnight selling pattern stops, the bulls will have move footing and we should begin to see some stronger reversal patterns, but until then.. continue to doubt the rallies.

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US Dollar DX Futures Comments:

Working on the 10th day of green for the dollar.  That trend is hard to find without a single red day.  The moves have been small grinding moves without any real thrust.  We are anxious to see if 81 will contain the dollar here, which if it does, so give some relief to equities. image

TLT Twenty Year Bond EFT Comments:

The TLT remains contained below 120, that could end today.  We are breaking out of a good size inverse head and shoulder that targets the 127 area roughly.  We don’t think that will happen, but then again we didn’t think 120 would happen again.  The debt crisis genie needs to be put back into it bottle to reverse this trend. image

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