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:
I am not sure if it is because I am tired today or if the news looks worse, but the news out of Japan and Europe seems to have a weakening feel to it. The market is up +8 on a gap overnight so the bad news must be market friendly.
9:45am ET (9:42am for those that can spend the money for early access) is the Chicago PMI. Next big number today will be factory orders at 10:00am.
Quote of the day:
Did you ever walk into a room and forget why you walked in? I think that’s how dogs spend their lives. – Sue Murphy
Current Breadth Readings: (click here to see all our breadth charts)
Bulls lost their 2nd trender as the Cumulative 4 Week NH/NL finally, out of frustration on a lack of upside, fell neutral. On this chart we will watch the cross of the 15DMA closely, that was our signal of a market short in April.
ES SP500 Futures Comments:
The market has double bottomed now at that 1396 area and pre-market USA we find ourselves up 9 ES handles. We will watch that run to the 1410.50 area to see if there is any poke through momentum from the lower high trendline established. If the downside trend is broken, next up on the screen will be 1412 then 1416. Those breaking today would be a very strong day indeed. Suffice it to say our short area today is 1421.
The Bernanke speaks today and that will steer the markets and volume and remove a choke collar that has been on the market for the last couple of weeks. The ECB will have their turn next week and then the markets will run into the US election.
On the downside, the place to watch is the 2x bottom at 1396. Should that bottom be a false bottom our next target down would be 1390.
US Dollar DX Futures Comments:
It is test day today, watch 81.25 for a break. Should that happen the equity market will have news to run to recent highs..
TLT Twenty Year Bond ETF Comments:
Failure here is what the bulls need. We have our lonely downside target at 118.50. The bulls need some higher interest rates indicating risk on.
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