Breadth needs some help before it is broken forever. Watch those new highs /new lows. $study

Some selling reprieve should be coming in here soon.  Breadth is about as bad as it can get.

 

The Zweig has a second day of oversold.

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Price, for the amount we have lost on breadth, is holding up remarkably well.  This CVI should be closer to those June numbers:

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The number of stocks below their 40 DMA are:

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Our NH/NL is stretched just about as much as it can be. This is what is calling for a pause in the bearish action and a little upside reprieve.

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Our Trenders remain steadfastly bearish:

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Still Waiting on the Zweig. Downside target moved up to $ES_F 1358 $Study

Around the Globe

    Asia – CLOSED

  • Shanghai (China) +0.37%
  • Hang Seng (Hong Kong) +1.20%
  • Nikkei (Japan)+0.04%

Europe as of 6:59am EDT

  • DAX (Germany) -0.29%
  • FTSE (UK) -0.53%

 

Today’s Economic News:

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Still tough numbers out of Europe.  Today in the USA, watch those retail sales numbers

Quote of the Day:
There is no cure for birth and death save to enjoy the interval.
–George Santayana

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

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Since we remain on a Zweig less than 40 watch, we will show that chart again.  Here we go.  Today’s gap up opening that has developed will have to fail to get us there today.

 

ES SP500 Futures Comments:

Short: 1391
Long: 1358

 

There was some strength yesterday and we liked that.  It raised our downside target up to the 1358 area now.  On the upside, we think the bulls will have to pause at the 1391 area.  Still a very large range, that is caused by these volatile days.  We did almost twenty points in yesterday’s cash session.

Price is making a possible reversal pattern here with a roundish bottom being put in place.   We don’t think 1400 can be broken for a while, and we think the lows may not be in or may be at least equaled one more time in a bottoming pattern.  It is Day 3 of OPEX.  Yesterday had decent volume all day and may have been the adjustment day, we will have to see.

We badly want that Zweig oversold, which means we need to see some weak days in the next 10 in order to drive the Zweig into the oversold area.

 

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US Dollar DX Futures Comments:

The dollar took a little break yesterday and has developed an 81/81.30 range.  We still like the 81.67 target which should be hit based on European distress and more equity weakness.

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TLT Twenty Year Bond ETF Comments:

We are still awaiting the touch of the 128 area on the TLT.

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>>> 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.

Breadth, reluctant to breakdown, Stubborn Zweig won’t go down $Study

Breadth remains weak, but we want that final wow! factor.  We want to see things that we have not seen before to trigger this turn-around.  It isn’t happening, it is a very controlled exodus right now.

If you recall, we want that Zweig breadth indicator to move down below the 40 level to get oversold and to signal the beginning of exhaustion.  This will be the call for the bulls to gather and to begin a climb back up to new highs.   This market won’t do that final sell off.  We have tried 4x now to break this 44 area which three times previously has been the exhaustion point for a rally back up.

 

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Our CVI is on the edge:

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40 DPI showing a precarious hold from yesterday:

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New Highs / New Lows bounce back above the 40 line:

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Trenders remain bearish:

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Greece keeps lighting the fires under the dollar and the US is fighting hard to not slip into the same… that keeps the markets weak $ES_F 1354 in the target zone. $study

Around the Globe

    Asia – CLOSED

  • Shanghai (China) +0.49%
  • Hang Seng (Hong Kong) +0.21%
  • Nikkei (Japan)-0.93%

Europe as of 7:00am EDT

  • DAX (Germany) +0.25%
  • FTSE (UK) +0.31%

Today’s Economic News:

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Quote of the Day:
A thing is not necessarily true because badly uttered, nor false because spoken magnificently.
–Saint Augustine of Hippo

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

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For today, the breadth chart to watch is the 52 Week New High / New Low ratio.  This is the first time we have been below 40 since June!  All those other pullbacks along the way did not hit this benchmark, making this pullback not like the others.

 

ES SP500 Futures Comments:

Short: 1393
Long: 1354

For the first time, our upper target now sits below 1400.  We think the next change for a capitulation move is in the 1354 area, and as long as we are not getting that Zweig oversold, we favor those lower targets all the way down to 1300.   We would like to see a more peppy rally with an attempt to recapture 1400, which we think would be besieged by sellers seeing it as the last life boat.

It is OPEX week and lot of put buyers and options sellers are taking their profits this week. That puts upside pressure on the market, so the fact that this market is not rallying yet keeps us bearish along with the sentiment indicators.  We are looking for bottom reversal signals, a hold of 1360 would be one, prints above 1390 another. 

 

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US Dollar DX Futures Comments:

Rumor has it that Greece is going to remain in the Euro and that there is another budget passed.  The noise and endless solutions and grim outlooks keep us bullish on the US Dollar and we want that 81.67 to hit and settle for a little sideways in there.

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TLT Twenty Year Bond ETF Comments:

We finally hit our 126 area, a little pullback here before 128 would seem reasonable.

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>>> 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.

Release of Breadth Indicators with Scoring for TradeStation 9.0

Note*** New version 1.1 removes an event handler that was just a little too active and had the effect of bogging down the workstation.  Performance of 1.1 should be greatly improved.

 

This is version 1.0 1.1 release of two indicators, a chart transmitter and receiver that are specifically designed to be used on the workspace provided.  Although the symbols can change, the basic setup is specific and the workspace is included in the downloads.

 

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The workspace consists of four charts.  The upper left chart is a look at the percentage of stocks trading above their 50 day moving average.  In general, if the signal line is above the 20 DMA (CYAN), I am bullish, if below, I am bearish.  This is a slow moving swing type indicator.  The histogram at the bottom of this chart is a combined score for the three tracked indexes.

 

The middle chart is a look at a 10 day cycle to determine how the market has moved in the last ten days.  Bars to the upside indicate upward movement in the market, negative bars the opposite.

 

The last chart on the top row is a look at 52 week new highs and is a great tell on topping divergence weakness (new market highs with a lower number of symbols making highs).  Stair stepping up and down indicates underneath weakness and strength that may or may not be reflected in the daily price of the index.

 

The bottom chart is a look at the $SPX (this symbol can be changed to whatever you like).  The histogram at the bottom is the combined breadth score for the nine indicators.

 

This chart and code ONLY WORKS ON TRADESTATION 9.0 AND ABOVE, as it uses the new OOEL extensions.  Source code is included and is a reasonable example of using the new global dictionary.

 

Input Parameters:

 

!RL_BreadthScore:

 

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MAlen – Length of the moving average to use to calculate momentum

bType – Used by the global dictionary to uniquely identify the receiver’s data

MaxBars – how many bars back to look for creating the symbols

version – Current version (do not change)

 

!RL_HILOSim:

This indicator is used in the 10 day cycle window and must be installed separately for all three symbols.

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Price: Type of price to use (High, Low, Close) – remember you can do math in parameter, inputs so if you want the daily pivot, enter “(H+L+C)/3” in the price input.

maLen: The length of the moving average

version: The current version – do not change

 

!RL_Breadth_Rcvr:

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numElements: number of elements to expect in the GlobalDictionary

KeyPrefix: not used

version: current version do not change

 

This is a premium members only indicator and workspace so you must be gold level or higher to download this indicator:

 

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This content is only available to premium members. If you would like to join and have access to all my indicators checkout the current special being offered here: <a href=”http://www.redliontrader.com/membership/”>Premium Membership </a>

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This is the ELD with all 3 indicators packaged.  Remember to install this before the workspace.

Note: This is version 1.1 that removes an overactive event handler

This is the workspace that should give you the setup that looks identical to the picture above:

 

As always if you need support: marlin@redliontrader.com

 

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