The bulls pushed past one of their objectives on the ESH10 contract yesterday, but on the SPX they made it 2 for 2. The previous contract high of ES was outside normal trading hours making the new high bar for ES a little higher than SPX, added to that was the SPX high was psych number 1150, madking it difficult for ES to reach its new high ground objective. But the message from the market is bulls rule.
The ES close above 1143 puts the price action in the bullish camp.
What did the world do with the ball?
Asia
Look at that Japan up yet again. China continues to show us weakness.
Europe
Europe is weakly green this morning. Looks like a positive consolidation day.
Homeland
Overnight the ES futures are down 6 points. That gap might close or widen before the open as we do have earnings and economic news this morning.
CPI will give us a check on inflation. A higher than expected number will raise the fed alert. The NY Manufacturing index had been missing it numbers lately. These number this morning are at staggered times the 9:55 release gets me every time so be aware.
Earnings
All earnings are before market opens this morning. There are no earnings after the bell. I think the JPM earnings just hit as I am typing this up because the SP futures just dove down 3 more points.
Sentiment Charts
40 DMA % Index
This chart scores a +4 today. The missing +2 is from the NYSE which did not push its index up from the previous day.
10 day high - low
This chart score a +4 today. Again the weakness on the chart is the NYSE, the RUT made a really strong recovery yesterday.
52 Week New Highs
The 52 Week new highs chart scores a +4 today. Again the NYSE was not strong enough to push into new the numbers needed to move the momentum indicator.
Conclusion
Our charts today add up to +12 which is in the solid bullish region. Yesterday's strength added to the previous day show the bulls are clearly in control.
This mornings futures chart is looking a little on the weak side with its reaction to the JPM numbers.
The box today is between 1148 and 1136.50. A print above 1148 would be good for the bulls a print below a 1138.50 is a small step for the bears. A close below 1138.50 would be a weak close. 1128 and below would be the ultimate goal for the bears.
The SPX cash chart looks much stronger than this chart so the bulls are in control today. Let's see if they can drive the price back above yesterday's highs. Today is OPEX Friday so there could be a lot of action. The markets are closed on Monday for Martin Luther King Day so go out and enjoy a nice 3 day weekend.
- Marlin aka:RedlionTrader
