Thursday, December 8, 2011


The semiconductor's gave up the ghost in the final minutes. How did Keybot know to watch the SOX? Moving forward, watch SOX 371.30, and tonight's close is 17 pennies below at 371.13, market bearish.  This adds another feather in the market bear cap, and note the effect on the algorithm with the algo number now dropping negative again and only seven points away from flipping to the short side. The utilitities, financials and volatility must be watched closely tomorrow.

For the SPX tomorrow, starting at 1234, if the bears can push under 1231.50, the downside will accelerate. If the bulls come to play and push the SPX upwards to touch the 1261 handle, the upside will accelerate.  A move thru 1233-1259 is sideways action. 1235 is critical S/R.

A drop of over 1% for the SPX in the final 20 minutes today is ridiculous. This action verifies that the markets are reacting immediately to any and all Europe news.  Fortunately, we have Keybot to steadily forge a trail thru this mine field. Note that the caution flag is out again.  Bad news from the E.U. Summit may push Keybot back to the short side tomorrow. For now, the algo remains long. SOX 371.30 is the most important thing to watch at the open tomorrow.

12/11/11; 7:00 PM EST =
12/9/11; 10:00 AM EST =
12/8/11; 3:56 PM EST = -10; signal line is -17
12/8/11; 10:20 AM EST = +6; signal line is -20
12/7/11; 10:49 AM EST = +22; signal line is -22

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