Officially neutral, if the Bulls can follow through today, that will change $study

Around the Globe

    Asia – CLOSED

  • Shanghai (China) +1.04%
  • Hang Seng (Hong Kong) +1.69%
  • Nikkei (Japan)+2.00%

Europe as of 5:53am EDT

  • DAX (Germany) +0.62%
  • FTSE (UK) +0.08%

 

Today’s Economic News:

image

Very light on news today.

Quote of the day:
I write down everything I want to remember. That way, instead of spending a lot of time trying to remember what it is I wrote down, I spend the time looking for the paper I wrote it down on. – Beryl Pfizer

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

image

The wedge is the story of the markets with lower highs and higher lows creating a diminishing pattern.  It is on price action, the dollar, and breadth.  We are officially neutral with both trenders in the neutral camp.  Price is telecasting an upside breakout.

ES SP500 Futures Comments:

Short: 1396
Long: 1370

Friday showed another good upside thrust day built from a decent jobs number and talk of the ECB actively buying Spanish and Italian bonds to keep interests low for those countries and to save the Euro.  That action sold off the dollar, rallied stocks, and sold off the bonds.  Today is about follow-through and seeing if breadth can begin to make higher highs now that price action is.

Our extended high range is 1396.  There is a lot of expectation on 1400 SPX, so we see us maxing out for now, or at least taking a pause here.   We are interested in seeing a retracement down to 1379 region for a refresh.  All that being said, the markets stand at the brink of doing something really impressive on the upside, fueled by bonds and a US Dollar/Euro pair reversal.    If those do break out we could be talking 1500 numbers soon.   While we would like to see that sometime this year, we would like to see a move down first to get a more convincing thrust up without the buy/sell cycles that have gotten us here so far.

 

image

US Dollar DX Futures Comments:

There is the unstable widening wedge that needs to change into a trend.  Upside markets go down, downside markets rally. 

image

TLT Twenty Year Bond ETF Comments:

imageTLT finally broke below the 128 area, 127 is the next area to watch.  The chart has made a head and shoulder pattern that is bearish for bonds but bullish for the equities markets.  Target is the 125 area from here.  We will watch this in conjunction with with the widening triangle forming on the US dollar.

 

 

 

image

>>> 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.