Oh, so close on a ZBT signal ! Breadth is uber-bullish, we need an overreach in that 1680 area to get any pullback $ES_F 1680

Today’s Economic News:


Numbers out of Euro-world are still looking weak.  Watching Michigan today to see if we can get a spike up that might induce some profit-taking, that might, in turn, induce some shorts that might panic out some recently added weak longs hands and that is how a giant snowball is made. Or we just grind higher into the weekend.

Quote of the Day:
Many people take no care of their money till they come nearly to the end of it, and others do just the same with their time.

Featured Breadth Chart of the Day:




We did get to the Zweig Overbought (>61.5) but it was not an official Zweig Breadth Thrust (ZBT). That play ended two days ago, but the target, a reading above 61.5 was hit yesterday and it completed in 12 days.  That makes this rally one of the strongest in the recovery and foretells more upside.  Very Strong.



Look at those new highs, amazing and un-flinching for now.   I would not be shorting if those remain high.


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

Short: 1680
Long:  1625


We are anxious to see if we can get to that 1680 area and then more excited to see how we perform. For sure there will be some acrobatics there. For now we have this 1672 area as a fulfillment of what was a failed head and shoulders.   On the downside we have 1625 that we think needs another stepping on before we go too much higher.  Looking through the breadth charts the highs look a bit too exuberant and that means our best chance at see some selling is a big push up that overreaches and stalls, possibly on news or a thin short cover squeeze during slow hours.  Whether the selling can sustain in this bullish sentiment is another issue.  How about those closings? (They are buying).

On The MiM



This was our 2nd day now with a very strong reading that was consistent through the entire on hour cycle of closing.  For those trading on the MiM, please understand that the data starts between 2:30 and 3:00pm ET. It starts when there is enough data to begin to push so it varies.  I don’t really like looking at the data until around 3pm when it is usually more complete.  It is a manual process to enter the data and it usually takes a little under 10 minutes to complete the cycle, so from when you first see data, watch how it is building, but give it some time.

Yesterday, marketwise, was a bit different than the day before reads when we were sitting away from the highs.   Yesterday we were on the highs, having trended up +20 all day long and it took a brave trader to add long with the MiM into the close.  There were opportunities on pullbacks and the 3:10pm entry seems to have been about the best timing looking at a 10 minute snapshot.

If you didn’t trade, and I don’t blame you, I would hope with such a MiM reading that you didn’t try and short the close. There is value in know what not to do also, saving 2 points on a dumb entry is worth $100 per.  That is a month right there for the MiM!



Comments about TLT (Twenty year Bond ETF):  


We are watching today to see if we can hit that 108.75 area, that gap away at 110 has our eyes too,  but a failure at 108.75 should see us visiting the 105.50 area.

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Breadth Charts in Full :

Zweig Breadth Thrust:


So we are overbought.. Wow,

Cumulative Volume Index:



Volume making up a bit of lost ground.

NYSE Up/Down Volume Percent :


Close but no cigar on the 9:1 up-day thrust yesterday.  It was very strong though.

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


As is our 40 DPI.

New Highs / New Lows ratio chart :


See if this can settle into a trending pattern by staying above 90 now.

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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