Bad News Bears in Europe have us watching $ES_F 1398 today, 1419 is a line in the sand $study

Around the Globe

    Asia – CLOSED

  • Shanghai (China) +0.07%
  • Hang Seng (Hong Kong) +0.31%
  • Nikkei (Japan)-0.67%

Europe as of 6:39am EDT

  • DAX (Germany) +0.45%
  • FTSE (UK) +0.32%


Today’s Economic News:


News, News, News, and almost all disappointing out of Europe.  The Bulls need a Eurozone rally and this news cycle is not the way to get that lit up.  In the USA, watch the 9am ET release of PMI and the 10am release of New Home Sales.  When the markets start moving at 2:15pm today it will be because of the FOMC release.   Watch for QEx today.  (Last chance before elections)

Quote of the day:
The cure for boredom is curiosity. There is no cure for curiosity. – Dorothy Parker

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


The movement on the NH/NL indicator is telling us to expect a decent bounce today.  If that does not happen, there is more bottoming to go.

ES SP500 Futures Comments:

Short: 1441
Long: 1398


That 1441 area is not moving for a variety of reasons.  That is the super bounce level.  We see 1419 today as a decision area.  If the bulls can’t take and close above that, we are in for more disappointment.   The bulls need Europe to rally, the data and news out today doesn’t help that effort.  Weak Europe = Strong Dollar = Lower Stock Prices.

If we get a drop to 1398 today, that would be a break  of 1400 and we think  a decision area and a possible gathering point for the bulls to try and push this new trend back into their favor.


US Dollar DX Futures Comments:

At the neckline, watching for the break.  A rallying dollar will drive stocks lower.  Watch the 80.25 line.


TLT Twenty Year Bond ETF Comments:

If economies are still weak (watch the news), they will need stimulus.  Stimulus is lower interest rates which are higher bond prices.  That is why we are focused on the TLT and a possible reversal here back to the upper 120s.   So watch 124/125 for a break.


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