Friday, December 9, 2011


Keybot the Quant remains long.  The algo printed a number just before the pre-scheduled number at 10 AM.  The spread between the algo number and signal line is tight so the caution flag remains in place.  Semiconductors, SOX, tumbled at the open remaining under 371.30 so this is a feather in the bears cap.  Copper, JJC, however, moved back above the critical 45.40 level giving the broad markets the current boost. As long as JJC stays elevated, watch to see if the SOX capitulates back to the bull side. If SOX regains 371.30, the broad indexes will take another leg upwards.  The market bulls need to touch the 1261 handle today to really get an upside party going; the SPX HOD has not even attained 1250 yet today.

12/11/11; 7:00 PM EST =
12/9/11; 10:00 AM EST = +6; signal line is -12
12/9/11; 9:50 AM EST = +6; signal line is -15
12/8/11; 3:56 PM EST = -10; signal line is -17
12/8/11; 10:20 AM EST = +6; signal line is -20

Note Added 12/9/11 at 10:15 AM:  Note that as the above was typed, SOX moved back above 371.30 at 10:10 AM, but, it did not hold, losing the level again four minutes later at 10:14 AM.  Very simply for today, broad markets will move higher if SOX is above 371.30 but if SOX is below and moving down, so will the broads.

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