Around the Globe
Today’s Economic News:
Nice numbers out of Germany, it will be GDP’s job to close up the gap just a bit and then we look to swing state Michigan to define the day.
Quote of the day:
There is no pleasure in having nothing to do; the fun is in having lots to do and not doing it. – Mary Wilson Little
Current Breadth Readings: (click here to see all our breadth charts)
Our breadth chart today is a repeat of the Zweig, which did a decent job holding yesterday. The bulls needs to show some follow-through, that is made more difficult with a decent-sized gap down this AM . Thank you Europe.
ES SP500 Futures Comments:
The markets have sold off over night and continue as of 7am ET to be near the lows of 1396. That was our target area for a bounce yesterday. Today we like 1389, but we also want some upside first. If we get to 1414 because of some great news, we would we would be looking for more exhaustion and further downside into that 1389 area.
Our premise on lower markets is based on a rallying dollar and bonds. Neither are happening. You will see from the dollar below that it is testing that 80.25 area again. Looks a little more promising today, but the TLT needs to sling shot up here in order to hit some of the lower prices I am looking at, like 1360 and 1315.
US Dollar DX Futures Comments:
We discussed this above – how close can we get to a breakout? Evidently very close, as we continue to attempt this area for the 5th or 6th time. Watch for follow-through weakness from today’s open.
TLT Twenty Year Bond ETF Comments:
Equally frustrating is the lack of fear and a run on bonds as the markets sell. We have both bonds and stocks selling at the same time. Where is the money flowing? Gold for one thing. For the bears, this pent-up TLT buying needs to start soon.
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