Good morning.
Opps and double opps.. I broke something on my website last night that prevented this mornings mailing from going out. I then sent it out a copy to the wrong mailing list of which some of you are subscribed, you may get two copies. I am sorry for the intrusion. I hope to be restored to normal soon. - thanks marlin
NR7 day yesterday. There are some things for the bulls to be concerned about and that is the stall of the Nasdaq. In the charts below you can see that the Nasdaq on Tuesday did not breakout to new highs and on Wednesday the Nasdaq retraced the entire Tuesday bar plus a little more. There is relative weakness there. The SPX on the other hand broke out nicely on Tuesday and had an NR7 recovery day. That is strength. These are two very different looking charts, one showing the inability to move higher, the other showing a propensity to go higher. Hard to call.
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Overnight Australia had a nice jobs report so if you are looking for a job you might head down under. Great Britain had decent month over month production numbers up .3% when expectations were to be up .1%. German industrial production was up 1.7%, that was 1.3% higher than expectation! If you need job you might think about going to Germany.
Speaking of jobs, we are going to get our initial claims this morning at 8:30am EDT. Yesterday’s ADP numbers have some bulls a little timid right now, a good initial claims number could restore their bravery. 10:30am EDT we get Natural Gas inventory and then at 3:00pm we will get consumer credit. The big number is tomorrow at 8:30am when we get the Jobs report. Today and tomorrow it is all about jobs and the ability of this economy to generate them.
Quote of the day:
Television is more interesting than people. If it were not, we would have people standing in the corners of our rooms. - Alan Corenk
| Chart | Score | Day-1 | Change |
| 40 DPI | 0 | +6 | -6 |
| 52 WNH | -3 | +6 | -9 |
| 10 DHL | -2 | +6 | -8 |
| Total | -5 | +18 | -23 |
The NR7 day zapped a lot of the breadth gained on Tuesday. The weakness in the Nasdaq pushed the scores bearish. Range expansion today either to the upside or the downside will set the direction of the numbers.
$SPX chart:
The game just became more interesting for the bears as their goal line has moved up from 1132 area to 1154/55 area. There is not a bunch of support and resistance lines up here so we need price action to find then and reveal them. 1155 is one of those lines from Wednesday’s bottom pivot.
For the bulls the 1163 line is still the goal. The inability to push it forward yesterday and then selling off showed some weakness. I assumed we would test 1157 on Wednesday, we went about 2 points deeper in what was an NR7 day for the SPX.
The 8:30 am initial claims should set the tone for today. The economic news from Europe has been very strong this week.
Don’t forget it is renewal time. Prices go up again this weekend. It would be great for Tom if we could finish the reup and have the all the seats sold before he comes back. There are still a few non-committals. If you are committed to next year and have not paid yet please let us know so we can hold your seat. Unlike the airline industry we will not over book.
The best form of commitment is to take advantage of the increasing price now and save yourself some trading money. If you need to make arrangements you can contact red or tom (marlin@redliontrader.com) or (tomandprisha@msn.com). Use one of the links below to renew you commitment.
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