Friday, December 16, 2011


Keybot the Quant remains short. The algo motored along yesterday without printing any additional numbers other than the opening print. Watch RTH to see if it maintains its bullish posture above 109.40, or it it fails. Above 109.40 and the broad markets remain buoyant, below and the markets will sell off. Watch XLF 12.82, if price punches up thru this will cause significant buying in the markets and take the indexes higher. If XLF stays below 12.82, it places a ceiling at these current levels for the broad markets.

For the SPX today, starting at 1216, watch for any break from the 1216-1220 sideways channel from yesterday.  Also any break from the wider 1210-1225 sideways channel now in place. Just like yesterday, if the SPX can touch the 1226 handle, the upside will explode higher with lots of bullish confidence.  If the SPX drops under 1212 today, the sellers will enter in force and the markets will be tumbling much lower, testing the critical 1210 level and likely failing. A move thru 1214-1224 is sideways action. The market bears remain in control overall.

12/18/11; 7:00 PM EST =
12/15/11; 9:30 AM EST = -26; signal line is -3
12/14/11; 2:00 PM EST = -42; signal line is -2
12/14/11; 1:14 PM EST = -26; signal line is -1
12/14/11; 10:08 AM EST = -42; signal line is -1

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