Tuesday, January 10, 2012


Keybot the Quant remains long ahead of the Wednesday session. The algo motored along today without printing any additional numbers after the opening print. The bulls threw a wild party today, the semiconductors are up big and the copper and commodities sectors supplied much of the bull fuel today.  Both the JJC 44.70 and CRB 313.00 levels, identified by the quant as important bull-bear lines in the sand, flipped to the bull side today. Thus, the intial signs of any market weakness will likely manifest itself if you see the levels above fail. If copper and commodities remain above the levels shown, then the rally party lives on. 

The SPX poked up thru the 10/27/11 October high at 1292.66 but could not close above. SPX 1295, 1296 and 1298 all offer up strong resistance. For Wednesday, for the SPX, starting at 1292.08, the market bulls need to touch the 1296.50 level, if so, the bull party will be in full swing with accelerated market upside in progress. The market bears need to push the SPX under 1281 to start the negative momo again which represents a give back of all of todays gains.

The SPX closed above the 12-month MA which is a very bullish signal.  As fate would have it, the 12-month MA is 1281.25, thus, for market bears, 1281 is the number you want to see on Wednesday.  Bulls want to see 1296.50.  A move thru 1282-1292 is sideways action. Even though the caution flag is removed for now, the markets remain very unstable and require vigilance.

1/15/12; 7:00 PM EST =
1/13/12; 10:00 AM EST =
1/10/12; 9:30 AM EST = +50; signal line is +15
1/10/12; 8:00 AM EST = +34; signal line is +14
1/9/12; 2:03 PM EST = +20; signal line is +12

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