Waiting for the Dollar and Bonds to run, but something is awry, next short area $ES_F 1420, 1397 for a long

Around the Globe

    Asia – CLOSED

  • Shanghai (China) -0.68%
  • Hang Seng (Hong Kong) +0.21%
  • Nikkei (Japan)+1.13%

Europe as of 5:55am EDT

  • DAX (Germany) +0.60%
  • FTSE (UK) +0.39%

    Today’s Economic News:


    Decent GDP numbers out of the UK.  Today in the US, durable goods and initial jobless claims are set to start the day.  Pending home sales at 10am will need an eye also, this is a recovering sector.

    Quote of the day:
    Ability will never catch up with the demand for it. – Malcolm Forbes

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


    Today we will feature our lead chart, the Zweig breadth index.  This chart is a 10-day average of the NYSE advance/decline line.  There was no follow-through yesterday to the downside on the Zweig.  That makes us believe there is a bounce in the works here.  We think that bounce will fall short and lead to finally breaking that 1400 area in the SP500.


    ES SP500 Futures Comments:

    Short: 1420
    Long: 1397

    Tight buy/sell areas today along what is now a double bottom.  We are watching the 1420 area for some indecision that could produce a decent short opportunity.  On the long side, a breakthrough of the double bottom around 1402, we think, could find buyers around 1397.  Overall, we remain bearish for the next few weeks and think that the market is going to do a decent corrective move between now and the end of the year based on our breadth signals.  That does not mean there is not opportunity for bulls, we think there is and one is setting up right now.  It does mean we think the short-term highs are in.

    We do have some major news between now and the end of the year so we could turn it around, but for now we think we have run as high as we can without gathering and re-focusing on the economy.


    US Dollar DX Futures Comments:

    That neckline continues to repel.  It is key to this market falling apart.


    TLT Twenty Year Bond ETF Comments:

    TLT is rounding the top.  We still think there may be one more push attempt up, which has us cautiously bullish on equities with a nervous eye on the TLT.  Once TLT reverses trend and begins to head toward the sub 100’s, the markets will be a-roaring.  We are watching for a possible handle forming on the cup here, if that does form and break out to the upside, you can begin calling Mittens Mr. President as TLT runs to the 135/36 area.


    >>> Follow us @redliontrader<<<<<


    DISCLAIMER: The information and data in the following report(s) were obtained from sources considered reliable. Opinions, market data, and recommendations are subject to change at any time. Their accuracy or completeness is not guaranteed and the giving of the same is not to be deemed as an offer or solicitation on our part with respect to the sale or purchase of any commodities or securities. TTTHedge.com, its  officers, directors and its contributors may in the normal course of business, have position(s), which may or may not agree with the opinions expressed in this report. TTTHedge.com, its officers, and directors are not agents, representatives, or affiliates of the CME Group or any trading entity. Trading Futures, Options, and retail off-exchange foreign currency transactions involves substantial risk of loss and is not suitable for all investors. You should carefully consider whether trading is suitable for you in light of your circumstances, knowledge, and financial resources. Any decision to purchase or sell as a result of the opinions expressed in these report(s) will be the full responsibility of the person(s) authorizing such transaction(s). BE ADVISED TO ALWAYS USE PROTECTIVE STOP LOSSES AND ALLOW FOR SLIPPAGE TO MANAGE YOUR TRADE(S) AS AN INVESTOR COULD LOSE ALL OR MORE THAN THEIR INITIAL INVESTMENT. PAST PERFORMANCE IS NOT INDICATIVE OF FUTURE RESULTS.