I slept in late this morning so now have to bang out this post quickly.. here goes
10 Day High and Low
I was watching intraday yesterday as it turned back and forth crossing between bullish thru neutral to bearish back again to bullish but the close pushed it into neutral territory and scores a perfect -6 which is bearish.
40 DMA % Index
… on the other side of the coin this index scored a +4 for bullish. Combined now we have a (-2) score. Today the NYSE curled while the RUT and the NASD recovered.
52 Week New Highs
So to the tie breaker.. the 52 week new highs:
These score a -6 perfect bearish, total now we are -8 which puts us in a bearish mode. Caution be told here another negative day would be a better confirmation. We still have very strong bullish sentiment in the numbers and they most likely will not roll over. I expect another day of fighting in here.
I am going to skip the ECON news around the world this morning and just tell you that Asia (Japan and China closed red.. the sell off at the end of the day in Japan was pretty strong). Europe last time I look was universally trading down around .5 -> .6%. So market weakness around the globe.
In the US we have the Chicago PMI number as well as the 10:30 crude number. The Chicago PMI comes out at a very inconvenient time at 9:45 am so watch that opening.
ES levels to watch:
For the last two days we had the ES trapped between that 1125 and 1120 area give or take a couple. It tried to escape yesterday only to slide back. This slide has broken the trend line from the start of this thrust so now we have to start thinking about a downside target here.
I expect today to be another wrestling day for control without too much price action. I will be watching to see if the bulls can get the price back into their 1120+ area. As a last line of defense they need to protect that 1111-1110 area. Below that could get ugly. I expect a 1111 close will keep the vacationing traders happy as it resets the price to pre-holiday levels. Those are what I am watching.
Happy New Years…
Marlin
