Tuesday, December 20, 2011


Keybot the Quant remains short as the algorithm prints out the pre-scheduled number for this morning. No change to the algo number itself but the signal line moved two ticks lower. The retail sector turned bearish yesterday. The only two sectors supporting bulls are the utilities and the lower volatility. That said, futures are up large currently, ready to take back yesterday's losses. Thus, watch RTH 109.60 at the open. A move above would place retail back on the bullish side and help elevate the broad markets.

Financials collapsed yesterday, BAC lost the five dollar level, so the XLF limits any significant market upside. XLF, now at 12.26, would need to move up above 12.82 to strengthen the broad markets and bring a Santa Claus rally to town; that appears difficult.

For the SPX for Tuesday, starting at 1205, the market bears only need to push a couple points lower thru the 1202-1204 support level and the 1190's will be printing. The futures, however, currently have a different idea in mind. The spoo's want to see about 15 handles so a test back up to the 1220 resistance may be on tap. The market bulls will have to strengthen the financials, and push the SPX up over 1224.50 today, if so, the bulls will run much higher and Santa is on his way.

1/1/12; 7:00 PM EST EOM EOQ4 EOY2011 =
12/27/11; 10:00 AM EST =
12/25/11; 7:00 PM EST =
12/22/11; 10:00 AM EST =
12/20/11; 9:00 AM EST = -42; signal line is -14
12/19/11; 2:59 PM EST = -42; signal line is -12
12/19/11; 2:50 PM EST = -26; signal line is -10

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