Keybot remains short to start the Thursday session. Yesterday, the 1318 level was pierced to the upside so the bulls tried to accelerate higher. The formidable 1329, 1331 and 1333 resistance levels held the bulls back. Gaps above at 1344 and 1360 and below at 1297 and 1280 remain open.
The tell yesterday was in the behavior of commodities (ex-copper), semi's and volatility. All three are perceived as bearish by the algorithm. The market bulls needed to win over two of the three to move higher--the bulls did not even get one of the three to change their stripes.
Today's futures are currently red and will fluctuate at 8:30 AM on Claims data. Stay on guard for a market pivot area at 10 AM when house pricing data, Philly Fed and Leading Indicators data are released. Today is the Lalapalooza of Earnings, huge earnings day, with about 50 key companies reporting.
The SPX starts today at 1326. If the bulls can push up to touch 1330.50, in that formidable resistance zone, then the buyers will come into the markets in force. With the current red futures, if the day starts out with the bears pushing lower, once the SPX moves under 1324 the indexes will be in trouble. If the SPX loses 1323.65 this morning, the selling will accelerate towards testing support levels at 1323, 1321, 1319, 1316 and 1314. Just as 1329-1333 is formidable resistance above, 1314 is strong support below. Markets remain unstable and at the mercy of the news wires, caution is warranted.
7/31/11; 7:00 PM EST EOM =
7/29/11; 10:00 AM EST =
7/26/11; 10:00 AM EST =
7/24/11; 7:00 PM EST =
7/19/11; 9:00 AM EST = +4; signal line is +19
7/18/11; 3:54 PM EST = +4; signal line is +17
7/18/11; 10:06 AM EST = -10
7/17/11; 7:00 PM EST = +4; signal line +15
7/15/11; 10:00 AM EST = +4
7/11/11; 10:34 AM EST = +4; signal line is +12; go short 1324; (Benchmark SPX for 2011=+5.3%)(Keybot this trade=+3.0%; Keybot for 2011=+7.8%)(Actual this trade via IWM=+3.7%; Actual for 2011=+2.8)
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