Around the Globe
- Asia – CLOSED
- Shanghai (China) -0.75%
- Hang Seng (Hong Kong) -0.66%
- Nikkei (Japan)-0.10%
Europe as of 7:12am EDT
- DAX (Germany) -0.47%
- FTSE (UK) -1.00%
Today’s Economic News:
The ISM numbers come out at 10 AM today, we want to get back above 50 to show some growth.
Quote of the day:
What luck for rulers that men do not think. – Adolf Hitler
Current Breadth Readings: (click here to see all our breadth charts)
We are highlighting the NH/NL chart today with a nice Friday recovery. This chart continues to tell us that holders are happy and not willing to sell but to add.
ES SP500 Futures Comments:
We are sitting watching Europe sell off the market for us, down about 5 points. There is talk that the ECB may have trouble legally and mechanically implementing their latest scheme to save Europe. I am sure they will figure it out, they have to. The market breadth in the US remains fairly strong, and the inability of the bears to push through that 2% pullback area and to get any multi-day downside follow-through has to be encouraging to the bulls.
The upside momentum is almost gone for the bulls now, a kind of sideways correction. How much leg this market has is still unknown but we do think this beast can put in one more chin-up before exhausting. That target area for now is 1420. We would like to see one more up then another test down to say 1390, and then have the markets break hard to the upside. That would have everyone’s heads turned around.
News remains the trump card and the week will be packed with that. We have ECB meetings and the Democratic convention which will be working hard to cast a shadow on the Parade from last week. So keep your powder dry and your finger on the mouse button. Have your stops in place.
We are officially neutral with the loss of the trenders, but we have to confess, we are still kind of like the bull side.
US Dollar DX Futures Comments:
I want that 80.85 touch here, but Europe is going to make it difficult. There will be ECB debate this week and that will create market and currency ripples.
TLT Twenty Year Bond ETF Comments:
TLT really moved against the 127 on Friday. We will watch today to see if that was anything more than buying 3 day protection in the US markets. With that break, there is a tiny-shouldered heads-and-shoulder (inversed) with a target right back up at the 130.50 area.
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