Around the Globe
Today’s Economic News:
Suddenly, Japan has gone cold on us. The Chinese PMI number was lukewarm which is good. The PMI numbers out of Europe and Germany were decent with German services up over the magical 50 growth number. Retail sales out of the UK were decent. The USA will have the initial Jobless claims where we need to break that high 300K number. Wouldn’t a 350K be just great! We also get the MFG PMI out at 9:00am premarket, so plenty of news to set up our day.
Quote of the day:
I could prove God statistically. – George Gallup
Current Breadth Readings: (click here to see all our breadth charts)
Breadth took a step forward with yesterday’s hanging around day. There are several indicators, like the NH/NL, that are in the extreme overbought area. That needs to be relieved, but that does not mean that prices will necessarily move down, just some under the hood correction needs to happen. We still think assaults at higher prices are in the planning.
ES SP500 Futures Comments:
We are taking a stab that today’s lows are in. That is a little nerve racking before numbers. The upper area has moved down to 1470 and we are still inclined to think that, based on the strength of the breadth, the bulls have one more trick up their sleeves to get there.
That 1459 yesterday was a wall so, for the bulls, an area to penetrate; for the bears, an area to defend. If we are wrong and selling begins early, then we suppose than we would be looking at 1440 as a bull regrouping area.
US Dollar DX Futures Comments:
We are watching the dollar closely for a reversal pattern, right now we think that upper trendline will be obeyed and expect a test of 80 before punching down through 79 which is what was teased yesterday.
TLT Twenty Year Bond ETF Comments:
This 121 is the bull/bear line now in the TLT. The bond bulls need to run to the 124 area, the bears down to 116. Let the battle begin.
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