The Olympics are over and March begins. Today we will see a little bit better what that last 15 minute selloff with a futures rally after the stock market closed meant. Maybe a little bear trap? We are setting up with a gap open this morning.
Asia
It was all green across the board in Asia.
Europe
Europe is having a good morning session.
United States
It would be nice to show some consumer interest this morning. We need to hit those targets on consumer spending to stop a 2 month slide. Something between .20 and .4% or greater should be just right to keep us on the upside today.
Economic news
Earnings
Breadth Charts
40 DMA % Index
The 40 DMA % Index put in mixed results. The NYSE was the strength of Friday and put in a +2 perfrmance while the Nasdaq and Rut are showing signs of rolling over and each score a neutral 0 putting the chart total at +2.
10 Day High - Low
Nice recovery on the 10 day high - low chart. We still need some type of large up day to get us back to those ten day high numbers of about a week ago. Wednesday the moving averages should have and easier time for turning up but for now the charts are scoring a neutral 0.
52 Week New Highs
Again the NYSE was the strength on Friday not only putting in a higher bar, but also turning the momentum indicator from bearish to neutral by turning flat. That puts the NYSE at +1 and the NAZ and RUT score neutral 0.
Conclusion
| Chart | Score |
| 40 DMA % Index | +2 |
| 10 Day High - Low | 0 |
| 52 Week New Highs | +1 |
| Total | +3 |
More or less the charts score in the neutral area. I am turning off my bull jets here for just a little as I wait for the SPX to burst out of the 1116 area to prove that the bulls can do it. I made a short 5 minute video stating my working model for the markets in the next few weeks. Basically it comes down to a breakout of 1116 we are going to new highs and a breakdown of 1085 and we are going down to 1044. I think the markets are balanced in here and a major move in either direction will be hard so I am treating 1114 as overbought and 1085 as oversold as we chop around in this range much like November and December.
Here is a link to watch my screencast.
$SPX
The markets have moved from a small gap up opening to around flat now. I think we still have upside here and the bulls need to get through that 1110 area and challenge that 1116. Prints above 1112 will put in a higher high and staying above 1110 would be a good day for the bulls. The bears would like to break 1100 today and put in some new lows.
Bull Plan: Rally up above 1112 hold any selloff attempt to stay above 1100. A close above 1110 would be great. Prints above 1116 would be extra credit.
Bear Plan: Let the bulls exhaust themselves at 1110 and then sell off and close below 1100. The lack of forward progress would add to the lack of confidence in the bulls.
- good luck trading - hope to see you in the markets.
Marlin aka RedlionTrader.
