When my kids were small, they watched Shari Lewis’ "Lamb Chop’s Play-Along" show. That show would end with “The Song That Never Ends.” It was annoying. Today, looking over the charts, that refrain popped into my head and I can’t get it out. I substitute “bull” for “song” when it repeats in my head.
We have had a 1588 extended target on the charts for a while now, so we are just going to bite the bullet and put our shorting zone there after being run over yesterday by a good 12 points from 1566. Wowsa … there are too many still trying to short this market and getting scalped.
We are leaving our landing zone at 1536 for now. We need to see a retest to position the lower level if we are to run higher, so that is a very wide swing range established now, 1588 x 1538 – nearly 50 points. We see the market as unstable here. The bulls need to get back into that low-volatility climbing mode that is effective in taking us higher and the bears need to rethink. That 1534 test area is a long ways away now, and getting further.
Our long-term trender is telling us to short this rally.
For Zweig breadth analysis, the DX and more, check out today's post.
- It’s 7:15 a.m. and the ESM is trading 1574.25, up 3 ticks; crude is up 27 cents at 89.45; and the euro is up 14 pips at 1.3009.
- In Asia, 11 out of 11 markets closed higher (Shanghai Comp +1.55%, Hang Seng +1.73%, Nikkei +2.32%).
- In Europe, 9 out of 12 markets are trading higher (CAC +0.77%, DAX +0.61%).
- Today’s headline: “U.S. Stock Futures Little Changed Amid Apple, P&G Results”
- Economic calendar: MBA mortgage applications, durable goods orders, Treasury Secretary Lew speaks, crude oil inventories, 5-year note auction and earnings from P&G, Ford, Qualcomm, Corning, Boeing, Lilly
- Fair value: S&P +1.42, NASDAQ -6.57
- MrTopStep Closing Print Video: https://mr-topstep.com/index.php/multimedia/video/latest/closing-print-4-23-2013
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