Bulls get another shot at $ES_F 1680… running start

Today’s Economic News:


China and Europe on the green today. Looking good.  In the US, watch the housing market and see if that is holding up to expectations.

Quote of the Day:
When you get to the end of your rope, tie a knot and hang on.
–Franklin D. Roosevelt

Featured Breadth Chart of the Day:


The New Highs/ New Lows ratio chart did a bit of a pullback.  We still put on 184 new highs on the NYSE SEOcompany so it isn’t breaking down yet.  Good news out of Europe and Asia today, so watch the USA news and the housing numbers to see if this economy is still trending up.


Comments and Levels for the Front ES (S&P500 – Emini futures) contract:

Short: 1680
Long:  1650


1680 is a tough nut.  We are seeing that and the bulls have pulled back just a bit (not much, not even 1%!).  That is a running start kind of move where the bulls want to run and take it higher.  That puts 1684 in play for the day and a good area to use as confirmation for a breakout. Breadth is very bullish and it is clear that the bears need to show some follow-through to yesterday.  Any doubt goes to the bulls without question.  We are on the lookout for serious reversal moves.  That hasn’t happened.


On the MiM:


You can see from the MiM snapshots that the early read was that a significant sell-side was developing, that was clearly erasing by 3:20 and in the final tally the MiM moved through neutral to the buy side.   That loss of the sell side signal and directional move was the setup for the best entry, a long around 3:20pm into the close that gave about 3 points.  For the early birds, the 3:00 entry with the meter and then an exit when the volume dropped below the 150MM number was the exit signal yielding about 2 points.


Comments about TLT (Twenty year Bond ETF):  


Last week we sang “I see the bad TLT rising” and here it goes.  It played with the 119.20 area for a while, we think it could be in trouble for a while here as far as upside, but would like to see the 120s soon in order to put on some downside pressure to aid the bears.

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Breadth Charts in Full :

Zweig Breadth Thrust:


A bit of weakness again on the Zweig.  We did have a negative NYSE line, so watch for bears to follow through, if they can.

Cumulative Volume Index:


No Info.

Number of NYSE issues trading ABOVE their 40 day moving average (40DPI):


First negative day in a while.

New Highs / New Lows ratio chart :


Needs to regain footing soon to resume trend status.

Trenders :

Short Term Trender –  McClellan Summation Index:



Long Term Trender –  Cumulative 4-week Highs – Lows (the fat lady):


Thank you for Reading –
Marlin aka RedlionTrader @redliontrader


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