Around the Globe

Asia – CLOSED
• Shanghai (China) -0.74%
• Hang Seng (Hong Kong) +0.42%
• Nikkei (Japan)-1.43%

Europe as of 6:14am EDT

• DAX (Germany) -0.17%
• FTSE (UK) -0.36%

Today’s Economic News:

Not a lot of news.  Watch those New Home Sales numbers at 10am EDT.

Quote of the day:
The trouble with our times is that the future is not what it used to be. – Paul Valery

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

We have lost one of the trenders, the McClellan Oscialltor, to the Bear side.  Our Cum NH/NL trending indicator, however, is steadfastly bullish.  We would wait for that to confirm to become outright longer trend bearish.  We still think this is corrective in nature and not reversal.  

ES SP500 Futures Comments:

Short: 1457
Long: 1430

Yesterday, we liked a bounce at the 1437 area.  It did get a little lift, but first bounces don’t count.  It took a 2nd hit and a pending closing bell to drive the markets lower.   We still like a reversal in this area, just a little lower between here and there, there being the 1430 area.

On the short side we, we like our upside down to 1457.  We note that the dollar is at key resistance and TLT is just shy for the 125 reversal area.  The market is setting up to rally, we just hope that we have the timing right.  The correction, and we think this is still corrective in nature and a reversal, should be contained by the 3% number at worst.  A break there and we have really blown it.

News remains the wild card for both sides as Eurries (Eurries = Euro worries) build and statements appease in a game of wait and see that I think is being played out. 

US Dollar DX Futures Comments:

That 80 dollar on the upside is in play today.  Equity bulls will want that 80  and the trendline to hold and the dollar to retest the 79.

TLT Twenty Year Bond ETF Comments:

TLT is at a decision area.  That 125 area should offer resistance and lines up with the 80 to the upside of the dollar resistance.  We think the market is setting up to rally again if we can keep those Europeans out of the streets.  These next couple of days are a techie’s dream.

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