It is the end of the week and end of the month. A month that has seen its highs and lows.
Last night around the world :
Asia
Japan and China both had a rough time last night. Japan closed on its lows of the day while China rallied off its lows around 2.5% down and managed to close down just 1%.
Europe
Europe this morning is reminding us what it is like to be green. Up across the board around that 1% level. There was a sharp selloff about 2 hours into the session but the markets have rebounded back showing strength.
United States
Lots of news today as the GDP numbers are released at 8:30. This will be a market mover for day. At 9:45 we get the Chicago PM and 10 minutes later we will get the Michigan sentiment numbers. Watch those times for market reaction good or bad.
Earnings
Earnings look a little mixed here at a quick glance. IDEXX looks like they did an excellent job both top and bottom.
Breadth Charts:
40 DMA % Index:
We are sitting at lows of the rally on this indicator. It will be make or break time today. The chart is now the most bearish and scores a perfect -6 today.
10 Day high - low
I wrote a quick post about this chart last night be on rally lows. A small bounce today as I mentioned yesterday and the day before will turn this current train wreck around. From yesterday this chart scored a neutral 0 since each index made slightly less 10 day lows than the previous day showing some bottom confirmation here.
52 Week New Highs
The number of 52 week new highs is flattening out here. The chart scores a -2 since the Nasdaq ,which was pounded yesterday, was unable to make a higher bar than the bar before. The NYSE and RUT are now at neutral. NYSE will need 25 new highs in the first 30 minutes today to stay neutral and about 40 to have a chance at turning the indicator around to bullish.
Conclusion
The charts score a bearish score today of -8. That is up from -4 yesterday because of the more bearish turn on the 40 DMA % Index.
SPX
Here is how the charts are setup today. The SPX did find support around that 1080 number and held in there yesterday and managed to rally off it. Today the bulls need to Take advantage of any gap opening this morning and not look back. A higher high above 1092 let's say 1093 and even some prints above SPX 1100 would show the bears the bulls can still run. The 1106 area becomes our Fib 38% level. We are watching that as a possible place to launch a second leg down.
ESH10
The numbers above roughly redone on the ES chart. That 1100 is the high bar for today.
Hope to see you in the markets or trading room this morning.
Marlin
