Monday, August 22, 2011

STOCK MARKET BEARISH -- SHORT -- CAUTION

The markets were staring into the abyss an hour ago but have since recovered. First of all, as you were watching the SPX for an 1121 handle, bingo, there it was at 11:55 AM. Seconds later it vanished. Losing that level opens up a flood of selling, the door was open and the bulls luckily shut it quickly to stop an immediate slide lower.

At 12:33 PM, the utes, UTIL, collapsed thru the 50 week MA, opening the trap door for the equites markets. Typically, within five to 20 minutes, the broad markets will collapse after this critical indicator is lost. Ten minutes later the UTIL regained the 50 week MA and put on as much distance upwards as it could, stopping a huge downside selling event today by minutes. Extremely exciting action.

Where does that leave the markets? The bulls stopped an all out collapse a short time ago by the skin of their teeth. Thus, watch to see if the bulls can gather additional mojo. Keybot the Quant wants to turn to the long side but algo rules continue to hold it back. The algo wants to see about 10 or 15 more spoo points to the upside today for it to reverse to the long side.

Keep watching for an SPX 1121 handle today, if it is touched, and especially with the UTIL losing 414.45, will result in a massive market sell off. The market bulls fought back today and are hanging in there. UTIL 414.45 provides today's answer, simply watch that into the close and it will tell you market direction. Above 414.45 and the broad markets will float sideways to sideways up; a move under 414.45 and a huge selling event will occur. At this writing UTIL is printing 415.09.  Hang on.

9/4/11; 7:00 PM EST =
9/2/11; 9:00 AM EST =
8/31/11; 7:00 PM EST EOM =
8/30/11; 10:00 AM EST =
8/28/11; 7:00 PM EST =
8/26/11; 10:00 AM EST =
8/22/11; 12:43 PM EST = -72; signal line is -78 but algorithm says stay short
8/22/11; 12:33 PM EST = -88
8/21/11; 7:00 PM EST = -72; signal line is -77 but algorithm says stay short
8/17/11; 11:52 AM EST = -72; signal line is -75 but algorithm says stay short

No comments:

Post a Comment

Note: Only a member of this blog may post a comment.