Sunday, December 4, 2011


Keybot the Quant begins the week on the long side comfortably bullish. In these markets things can change quickly, however, and the Friday weakness with utilities bears watching. UTIL is now at 444 and would signal significant market danger if the 424-425 area is lost.

Market bulls are in firm control of the indexes now but any chinks in the armour would first show with the semiconductor, financial or copper sectors. As long as the bulls maintain SOX above 370.50, XLF above 12.75, and JJC above 45.25, the indexes will float upwards.  If one or even two of these sectors turn bearish, some near-term market weakness may occur but the market bulls can still maintain control overall.  If all three turn south, the indexes will be selling off substantially.

For the SPX on Monday, starting at 1244, the market bulls need to touch 1260, if so, the upside will accelerate.  The market bears have an easier road since the indexes closed near the lows.  Any red futures will usher in market weakness from the get go that should accelerate the downside several handles targeting 1240 and 1235 support levels. A move thru 1244-1259 is sideways action. The algo number is 49 points above the signal line which is very bullish but stay on guard. Keybot prints out one pre-scheduled number this week on Friday morning.

12/11/11; 7:00 PM EST =
12/9/11; 10:00 AM EST =
12/4/11; 7:00 PM EST = +22; signal line is -27
12/2/11; 9:00 AM EST = +22; signal line is -30
12/1/11; 1:42 PM EST = +22; signal line is -32
12/1/11; 10:35 AM EST = +6; signal line is -35

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