Going through the charts this morning we have putt in a neutral score at this bottom. A positive day today should slam the charts to bullish.
Around the globe:
Asia
Green finishes for both indices. The Japan put up some strong factory orders showing some real growth. China is getting ready for a 5 day market shutdown for next week in the celebration of Lunar New Year.
Europe
Nice rallies going on in Europe this morning as news about Portugal and Greece seem to be shaken off for the time being allowing the markets to resume their rally form oversold.
United States
Economic news
Not much on the news front this morning . Trade balance news could effect the dollar which in turn could have some impact on the markets. There is a major snow storm/blizzard hitting the east coast of the United States from Washington DC to Boston MA. Most businesses in the swath are closed so many traders will not be behind their desks today. I am not sure were Bernanke is speaking but that may be postponed also.
Earnings
ICE put up some impressive top line numbers while missing their bottom line numbers by a penny.
Breadth Charts
40 DMA % Index
We are again attempting to curl up from here on all three indices. The NYSE has joined the other two now in pointing more northerly. The chart scores a neutral 0 today. We are on the oversold lows of the rally with just 26% of NYSE symbols trading above their 40 day moving average.
10 Day High - Low
Our ten day high minus low chart also puts in a score of 0 today. While each index put in a stronger bar than the day before none of them were stronger than 5 days ago so the chart scores neutral.
52 Week New Highs
We turn to the 52 week new high chart. In line with the previous two charts the 52 week new high chart scores a 0. Like the 10 day high minus low chart the 52 week new high chart put in more new highs yesterday than the day before but still remains weaker than 5 days ago.
Conclusion
| Chart | Score |
| 40 DMA % Index | 0 |
| 10 Day High - Low | 0 |
| 52 Week New Highs | 0 |
| Total | 0 |
Neutral. We will have to watch intraday for shifts in one direction of the other. The world-wide rally mood last night added to the strong up-volume and A/D line day of yesterday puts me in the bullish side of neutral but there is heavy selling areas overhead.
$SPX
I wanted to zoom out a little on the charts this morning to put into perspective where we are off the bottom compared to the top. Slowly we are attempting to climb out of the crevasse we found we have slipped into. Like an ice climber we are pulling our selves higher and higher at a fairly slow pace. We are still waiting for a thrust day that lets us know from open to close that the bulls are in control. We do not have that yet.
The game plan today for the bulls is to continue making new highs without making new lows. The rumor low of yesterday at 1061 held above Monday's low and now 1061 becomes the goal line for the bears and a last stand line for the bulls. The ultimate goal for the bears is still the 1044 area.
A new high above 1080 will put life into the bulls. Our high failure area remains at 1085 but we are setup to rally hard from 1080 to 1100, it could be a very quick 20 points. I might try and catch a wave up at 1080 and lighten my load around 1085 just in case.
The markets are in neutral today and they do need some breadth to kick in to propel prices beyond 1080 and then up from there. Any failure in here and we could slip deeper into our crevasse. We shall watch the breadth intraday to make sure it is strengthening.
Hope to see you in the room today.
Marlin aka (redlionTrader)
