Around the Globe
Today’s Economic News:
Lots of news and lots of green overnight on the economic numbers.
Quote of the day:
There are three kinds of lies: lies, damned lies, and statistics. – Benjamin Disraeli
Current Breadth Readings: (click here to see all our breadth charts)
We had some questions in the trading room yesterday about the Zweig and if it was going to be overbought. The answer is not yet. Those 11 days or so of sideways are all in the Zweig calculation now. As we move forward, the advance/decline lines will be compared to our last 10 days of sideways, that will give the Zweig opportunity to reach that elite 63 area.
ES SP500 Futures Comments:
Yesterday gave us that one more push we had been searching for over the last week. We had 1420 as a potential lower momentum high, instead we blew through that and picked up new highs and momentum. The upside target for today is right where we start in the 1436 area. We don’t think there will be much more extension than that today. We are looking for either an NR7 day, a follow-through day in which we will be wrong on the 1436 call, or a reversal day where we move down more that 50% of yesterday’s move.
An NR7 with a nice SP500 A/D line above 2:1 would indicate to us a nice Monday, too.
If we give up more than 50% on the day from yesterday, we will have to put the thrust into the suspect column. Right now all looks incredibly strong and shorts remain against the rope getting pummeled. The ref needs to break it up.
US Dollar DX Futures Comments:
Yeah, 80.85 finally tagged last night The bulls are going to want to see some more follow through and eventually a challenge to the 80 area. Now that this last target is hit, we will sharpen our pencils and work some more DX numbers over the weekend.
TLT Twenty Year Bond ETF Comments:
TLT continued to break down yesterday. The question is – will it trend down to our 118.50 area? The bonds seem increasingly unstable.
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