Around the Globe
Today’s Economic News:
Big list of data overnight and for today in the USA. Overall not bad out of Europe, a rather lousy consumer confidence, but those consumers are fickle and change on a dime, or Euro as the case maybe. Today in the US we need to see the spiking initial jobless claims to get back where they were just a few weeks ago. Preliminary GDP numbers are worth watching at 8:30am ET. This week’s housing theme continues at 10am with pending home sales. Expectations are for strength, home sales numbers yesterday were a disappointment and it moved the markets. Today this gap up will be in jeopardy if we miss. Housing is one of the legs this market is resting on.
Quote of the Day:
Commonsense and good nature will do a lot to make the pilgrimage of life not too difficult.
–William Somerset Maugham
Current Breadth Readings: (click here to see all our breadth charts)
The Zweig continues on the radar as we are on Day 8. More details on that can be found here:
We want to highlight today our McClellan Summation Index that we follow for trending. Yesterday gave us a cross of the 15 DMA that we use as a confirmation for this trender. That puts this bounce into the bottom category. Not that it would be proven as a bottom, but a much lower market is now seriously in doubt. ie. we think it is time to turn bullish if you are not already.
ES SP500 Futures Comments:
My charts are usually broacasting live as I do my data planning early in the morning and there is about an audience of a couple of thousand people watching me place my lines and then adjust them and adjust them some more and then finally snap the picture and capture the reversal areas for the day. Today that vast audience saw me having a hard time with that 1424 area. I really either like the 1418 area where we are now or 1431.
I don’t like opening in the bounce areas, and I don’t like having action so far away that you don’t get involved in the days action. Hence, a compromise at 1424. It was all very dramatic in negotiations this morning.
We do like are 1394 as a hold incase we unravel. Oh, that 1431 is both a measured move from a neckline along the bottom and also forms its own neckline from two previous attempts to climb above. It is a very interesting level and it would be surprising if the next 7 trading days don’t have a 1431 print in them somewhere.
US Dollar DX Futures Comments:
It will be in the bag for the bulls if we can get 80 to break on the dollar …
TLT Twenty Year Bond ETF Comments:
.. and TLT is finally making that turn for the Coast and heading to the 122 area we thinks.
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