Looking for the next orbit level at $es_f 1414

Around the Globe

    Asia – CLOSED

  • Shanghai (China) -0.32%
  • Hang Seng (Hong Kong) -0.45%
  • Nikkei (Japan)+1.88%

Europe as of 6:58am EDT

  • DAX (Germany) +0.10%
  • FTSE (UK) -0.20%


Today’s Economic News:


The UK had another good set of numbers.  Premarket in the USA is housing data and initial jobless claims. There is a glimmer of hope with a glow that could strike a fire in the housing market, so those numbers will be closely watched today.

Quote of the day:
Time is an illusion. Lunchtime doubly so. – Douglas Adams

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


Breadth improved across the board.  This is the cumulative 4 week new high / new low index and we picked this indicator to show everyone how strong the new highs have been as we approach a double top with April. 


ES SP500 Futures Comments:

Short: 1414
Long: 1395

The market continues to be strong.  The range remains tight as we continue to weave a bull flag that is waving in a brisk wind with a continuous slow climb higher.  Our next high extension upside  is in the 1414 area.   If we break above that area, then we think the market will be making a stronger move to the upside and a possible extension thrust will be in play.    For the long  today we want to watch for price action  that settles into the 1395 area.  That 1410 area remains  a double top warning zone, we think that will get tested today.  If up and over, we think the top in the 1414 area is the next up side orbit level and will be looking for indicators of overbought and weaker bid lines as signs that a safe short can be entered.

So far OPEX has not provided any fireworks, but it could be like the San Diego fourth of July celebration where the entire show accidently went off all at once and was over in 15 seconds.  


US Dollar DX Futures Comments:

The dollar has a new upside resistance area to work through and that is 83.   This stronger move on the dollar should be adding downside pressure on the equity markets.  The Dollar, like equities, remains in a tight sideways trading range, but it should be making lower lows.


TLT Twenty Year Bond ETF Comments:

TLT is really picking up downside momentum now.  Our 118.50 target zone is now in play.  We thought there would be a little more play at the 125 area before breaking through, but this downside move is strong and could add the tail winds that equities need to make the next orbital level up.


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