Monday, January 23, 2012


Keybot the Quant remains long, the broad markets continue to float upwards.  The SPX took out Friday's closing high print at 1315.38 causing an upside acceleration.  The SPX 1314-1318 strong resistance cluster appears to be folding like a cheap suit.  The CRB is back above 311.50 providing today's bullish strength.  The markets will remain elevated unless the CRB loses 311.50.

Watch the SPX:VIX ratio since it poked above 68.  Any drop under 68 will likely trigger a strong broad market sell off.  Note how Keybot keeps ratcheting up the signal line, this will make a turn to the bear side occur easily--when it decides to occur.  For now, the bulls keep motoring along. Focus on CRB 311.50 and SPX:VIX 68 today to determine broad market direction. Remain cautious and stay on guard.

1/29/12; 7:00 PM EST =
1/27/12; 10:00 AM EST =
1/23/12; 9:33 AM EST = +64; signal line is +43
1/23/12; 9:21 AM EST = +50; signal line is +41
1/23/12; 8:00 AM EST = +64; signal line is +40
1/22/12; 7:00 PM EST = +50; signal line is +38

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