The President last night called for a new beginning and maybe the market will give him one today. The rally into and out of the FOMC meeting yesterday had some legs and overnight kept running with some weakness introduced by Europe.
Around the globe:
Asia
Japan and China rallied out of the gate. Up as high as 2% during mid-day trading they sold off a little into the close.
Europe
Europe picked up the relay and had nice gap openings but they are not able to hold their gaps and are selling down into their afternoons.
United States
Economic news today:
Earnings:
http://www.briefing.com/generalcontent/investor/active/articlepopup/pagepopup.aspx?pageid=3270
This link is my favorite quick scan earnings site. I can quickly find the hits and misses and look at top-line year over year. Check out OSK Oshkosh Trucks the morning. That is a homerun. And kudos to Ford too. Missed by a penny but who's counting. Top line growth and profit. Good job.
Breadth Charts
40 DMA % Index:
We got a little hook yesterday on Naz and Rut (yellow and magenta) which put those two indices into neutral from bearish. The NYSE is still flashing bearish and needs to be watch today for relative strength. If the NYSE can not turn around it will turn around the others. Chart scores a -2 slightly bearish.
10 Day high - low:
This chart scores a -2. Again the NYSE did not move to neutral. We have now piled up enough red bars, it is time for the market to begin showing some strength in here. Any strength today.. (the gap opening that is developing will help).without making new lows and we should be able to pull this chart into bullish scores by the end of the day. Again watch the behavior of the NYSE index today.
52 Week highs:
This chart scores a -4 today with the NYSE and Naz unable to put in a higher bar. A gap open today will solve that problem as long as we do not make new lows today. Look for at least 25 new NYSE highs in the opening 30 today.
Conclusion
The charts are getting less bearish but the late day rally yesterday was not enough for them to shed their bearish tones. A gap open today that holds would go a long way to fixing the sentiment in the breadth charts. Total score today was a -4 compared to yesterdays -12.
SPX
The goal line for the bulls is a break of 1100 and some prints above 1103.63. This should happen on the open here if the gap holds. They need a close above 1100 today. Extra credit for the bulls is a push above 1110. The bears want to have the gap fail and see more selling dropping us down below 1090. Prints below 1085 today will be very bad. Hopefully that scary spike yesterday down to 1083 shook the bulls awake.
We are not out of the woods yet. Some of these corrections have had a second leg down that kicks in around the 38% fib number which for this current high to low is around the 1110 area so we are vulnerable in here yet.
ESH10 Equiv:
We start near the bulls goal line today so the bulls need to push up and over and now need that 1103 area to set a higher high. Watch the 1105 area as that is the 38% fib level where second leg downs have happened in some of these bull corrections.
Caution is the word.
See you in the trading room or in the markets.
Marlin aka: RedlionTrader
