Monday, January 23, 2012

STOCK MARKET BULLISH -- LONG -- CAUTION

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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