New Highs, Bulls panting at the new altitude but so are the bears $study

Around the Globe

    Asia – CLOSED

  • Shanghai (China) +0.13%
  • Hang Seng (Hong Kong) +0.77%
  • Nikkei (Japan)+0.77%

Europe as of 6:46am EDT

  • DAX (Germany) +0.21%
  • FTSE (UK) +0.22%


Today’s Economic News:


The European numbers, particularly the trade balance number, came in very nice with a larger export number than expected and still very little signs of inflation.

Quote of the day:
Typos are very important to all written form. It gives the reader something to look for so they aren’t distracted by the total lack of content in your writing. – Randy K. Milholland

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


Today we put up what had been the strongest component of the breadth indexes, the New High /New Low ratio chart.  Yesterday, despite higher highs in price action, the new high ratio went just a wee bit lower.  That divergence on our strongest bullish index has us watching closely for today’s actions and results.

ES SP500 Futures Comments:

Short: 1416
Long: 1392

Yesterday we targeted 1414 as a short and we like that call for the swing here.  Some testing and probing could run the markets up to 1420 but a double top re-think for the markets is due.  Today is OPEX Friday and that needs to expire.  Congrats to all the bulls on those Options, this week has been a payday.

1402 was our bull/bear line from a couple of days ago, we think that line is worth keeping on the charts as the markets wrestle to acclimate to the new altitudes. That means building up support from below.  Those foundational buyers are a little slow to move up their bids sometimes.

We have not had a 1% correction since 8/2, that is a long time to run without breathing.  One percent from here would take us down to that 1402 and would test the underbelly for support.

Breadth remains strong with the one concern mentioned above.



US Dollar DX Futures Comments:

Not much to say about the dollar since it is sideways, 83 to the upside and 82 on the downside. 


TLT Twenty Year Bond ETF Comments:

We are more than a decade off in price now on the TLT in a spectacular fall.  Our landing pad in here is 118.50.


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