Bulls, Bears, Opex and Earmings.. oh my.. $SPX

Slightly down this morning as we head into my least favorite week OPEX.  Overnight, in general,  Asia was green with the Shanghai up .8%. The weakness was in Japan, which appears to be stumbling a bit here on the domestic front, down .39%.  Europe is holding in with UK taking the lead at .72% and CAC at this time just floating above the green line at .06%.


UK reported their GDP numbers which were in line.. so their market must be a relief rally.  The UK also had a nice service sector number that came in above expectations.


For the USA we have no scheduled news this morning on my calendar. Bernanke will speak at 10:00 am somewhere so if we start to make a move around 10 you will know.


Quote of the day:
Originality is the fine art of remembering what you hear but forgetting where you heard it. – Laurence J. Peter






40 DPI




52 WNH




10 DHL








Breadth charts are all looking good.  I am not sure they will get picked up in this mornings digest since I published some of them on Saturday.  There is a little hole in the system on weekends where I can not stop the Daily Digest from going out.  There are links at the bottom of this section to take you to the latest posts for each chart if they are not here and you are curious what the charts look like.


My only real concern for the bullish score on the charts is the 52 week new highs which for the RUT are quite anemic. Also the fact that we are still adding more 52 week new lows than highs on Nasdaq and RUT.  I would like to see that turn around in the next couple of days.



$SPX chart:


Our “Bounce” continues now up about 6.5% from the low on 7/1.   The trend remains to the upside with a bull goal line today of around 1084.  The bears are aiming at a sweeping rally buster and need to break that trend with some prints below 1057.50 today.   Above 1084 I have lines drawn every 10 points with one at 1094 and 1104 to the upside.  On the downside the lines are as drawn.



We remain on our Zweig thrust watch.  If it isn’t included you can see the latest Zweig chart here:

Zweig Watch – Day 4 – Bears are getting nervous $SPX [chart]

Earnings kick off this week so you should be using the earnings link in the newsletter.  Let me know if any of the links ever go stale or if you are having trouble accessing charts, data the room etc. 


I did some work this weekend which I will continue to work on this week to quantify, but anecdotally, it appears that without a follow through week this week (a green weekly candle), an attempt for the summit will not happen and we should tumble to a lower ridge.  So if you think this is the start of a summer rally, we need to rally this week or the summer rally will have to wait for another attempt.


Trade On

RedLionTrader aka: marlin




Latest Posts for:

52 Week New Highs

10 Day Highs minus Lows

40 DMA % Index

Follow me on twitter: @redliontrader

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