Friday, January 27, 2012


Keybot the Quant remains long as the pre-scheduled number prints. There is no change to the algo number but note how the signal line keeps ratcheting upwards. The higher the signal line moves the closer the quant comes to flipping to the short side.

The SPX dropped at the open to tag the 1313.60 projection, and bounced.  Thus, this support requires close watching today, another test of this level should be likely today.  The utes are showing weakness again but UTIL remains well above the danger level with a 439 handle.  The utes close today is extremely important.  The number the algo identified for UTIL this week is 439 but next week this increases to 453 starting at the opening bell on Monday morning. If UTIL is under 453 at 4 PM today, this is an extremely major bearish signal for the broad markets Keybot will drop at the opening bell on Monday morning as a result of this print and the trend change to the short side may be at hand.

Markets are very dicey currently.  Stay on guard, these markets are extremely unstable currently and a significant trend change may be at the doorstep.

1/29/12; 7:00 PM EST =
1/27/12; 10:00 AM EST = +64; signal line is +45
1/23/12; 9:33 AM EST = +64; signal line is +43
1/23/12; 9:21 AM EST = +50; signal line is +41

Note Added 1/27/12 at 10:11 AM:  Speak of the devil, the SPX came down to test that 1313.60 support again, and bounced again. The bulls are fending off the negativity so far.  Look for another test of 1313.60.

Note Added 1/27/12 at 10:15 AM:  Failure at 1313.60. Bears got some game today.  See if the 1313.60 now serves as resistance as the day moves along.  A several handle downside acceleration would be expected if the bears stay under 1313.60 for seven to ten minutes. There is the answer, the SPX popping upwards again. More drama should occur at 1313.60.

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