Today’s Economic News:
Great numbers out of Japan. Don’t like those negative inflation numbers out of Germany. Jobless claims and retail sales numbers are the potential tail wind for the bulls today.
Quote of the Day:
The real trap of fame is its irresistibility.
Featured Breadth Chart of the Day:
The Zweig gave us a bit of downside despite the market holding, as did the NH/NL chart. This rally is just now starting to show some fraying.
Comments and Levels for the Front ES (S&P500 – Emini futures) contract:
Like a rat on a sinking ship, we climb our potential top higher yet again, this time to 1680. That double top is still in play to that area at which point any retest to the downside will be worthy of noting, much like that 1595 area was. We are just seeing a bit of fraying here only (ha) putting in 192 new highs. We will continue to watch that and any stumble for the bull between here and 1680.
On the MiM
Great opportunities on the MiM, right at the time and location that most thought the plug was to be pulled on the markets, us meter readers had a little inside edge watching the buy side build. Many managed to make money yesterday. This is how it played out in the MTS IM-Pro trading room:
A good solid performance for the MiM giving us confidence on a hold and then a run, that has continued into this morning.
Comments about TLT (Twenty year Bond ETF):
Looking for a run up to 108.75 and then that double bottom is in play on any test at 106, failure means the 105.25 area in our opinion.
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Breadth Charts in Full :
Zweig Breadth Thrust:
Just a bit divergent. This gap up today should be a real tell if the market can hold.
Cumulative Volume Index:
Market looked tired yesterday and now it has been given a boost up, can it follow through?
Number of NYSE issues trading ABOVE their 40 day moving average (40DPI):
While all the other indicators were down a touch yesterday, this 40DPI made progress, that is that math advantage for the bulls at work now.
New Highs / New Lows ratio chart :
Just a touch of warning, today is about follow-through.
Short Term Trender – McClellan Summation Index:
We have moved from correction to bullish again!
Fat-Lady is now 2 days above the demarcation zone, that puts here as bullish.
Thank you for Reading –
Marlin aka RedlionTrader @redliontrader
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