We are watching for more volatility collapse and channeling higher $ES_F 1409 next extension $study

Around the Globe

    Asia – CLOSED

  • Shanghai (China) +0.61%
  • Hang Seng (Hong Kong) +1.02%
  • Nikkei (Japan)+1.10%

Europe as of 6:39am EDT

  • DAX (Germany) -0.63%
  • FTSE (UK) -0.06%


Today’s Economic News:


When is bad news good news?  When the world wants Chinese stimulus and their number just misses expectations.  That is what happened last night and Shanghai and Hong Kong both loved it.  Today in the US, the initial jobless claims number and wholesale inventories will get mixed into today’s market action.

Quote of the day:
A lie told often enough becomes the truth. – Lenin

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


We marvel at the strength of the NH/NL indicator, putting in a bend higher.  The breadth of stocks making new 52 week highs continues to build and that will make the market harder to sell.


ES SP500 Futures Comments:

Short: 1409
Long: 1382


Our long short area continues to be tight.  We see volatility squeezing out quickly.  The next upside extension for us in the low volatility environment is the 1409/1410 are.  On the downside, we would expect a pull back that did not have substantial news behind it, to be acquired in the 1382 area.

Posturing for next week’s OPEX will be starting over the next two days.


US Dollar DX Futures Comments:

Dollar is building a kind of bear flat from last week’s fall.  That 83 area is key for the dollar bears to begin striking back.


TLT Twenty Year Bond ETF Comments:

Mission accomplished for TLT on the head and shoulders top.  We are down about 5 points from the high which makes us marvel how much the market has moved.  Imagine getting 25 more points from here to head below 100, that is going to happen at some point.  At first it will be good for the market, but as rates rise, it will take a toll on growth.


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