Yesterday we showed the divergences in the the ZB indicator for several markets and indices. The NYSE, the real base market for the ZB, show a slight upward ZB while many others showed a downward ZB. As promised I would reveal the winner the next day, and as you know, the NYSE and the ALL US indicators joined their brothers and are all now pointing south.
The NYSE is still the strongest of the brothers with a 53.2% reading. The weakest is the DOW-30 with a 48.5% reading. The rest of the brothers sit almost exactly at 50%. How much more neutral can you get? Today I will be watching closely the NYSE for signs of weakening as well as the Russell for the same. The sell off in the Russell yesterday at the close, [in keeping with our Hogan’s Hero theme this week], was “veeeery interesting” - [Col. Klink].
This morning’s futures are all pointing higher, Asia had it usual mix of good and bad markets last night, all the major Europe markets are up about 1% as I write this. Lots of Economic news today. Around the world German retail sales month over month showed a positive growth (the forecast was for negative) and the Euro and British PMI numbers came in slightly above expectations. Hence a good run today in Euro land. Here in the US the MBA mortgage application data came out showing a 19% decrease in mortgage applications. On the employment front the fore-shadowing ADP employment report is out showing a greater than forecast job loss, but less than the previous month. (Actual: 473K, Predicted: 410K, Previous: 532K).
Now we wait for 10:00 am for the ISM, Home sales and construction information. 10:30 am this morning we get the crude inventory numbers, so lots and lots of action today on what is the first day of a new quarter as fund managers re-arrange their holdings and strategies for another quarter. Off to the races!
Happy Trading
-RLT
