Sunday, February 26, 2012


Keybot the Quant is long to start the new trading week.  The algo is monitoring the retail sector closely as the week begins.  If RTH falls under 39, now at 39.63, the broad markets will be in trouble.  The financials may be effected this week by the LTRO and Fed news. If XLF drops under 14.20, now at 14.67, the broad markets will be in trouble.  The utilities, UTIL, that was so much a focus last week, favors the bulls this week, at least at the start, since UTIL 442 must be maintianed to keep the markets buoyant and UTIL is comfortably eleven handles higher.  Of interest, however, is that the utes have logged three weekly downtrend weeks over the last four weeks which is very bearish for markets moving forward. Thus, UTIL 442 must be watched and a big win will occur for bulls if the new week ends on Friday with UTIL remaining above 442.

For the SPX starting at 1366, the market bulls only have to touch 1369, if so, another bull run higher is on tapSPX 1370.58, the intraday high from 2011, will then be tested, then 1377 if the 1370.58 R fails.  The market bears need to push back under the 2011 closing high at 1363.61 to accelerate the negativity.  A move thru 1365-1367 is sideways action.  Since the projected range for Monday is tight, one side will win, likely determined by the move up thru 1369.00, or, down thru 1363.61.

Markets remain unstable and require close attention. Two pre-scheduled numbers occur this week for the quant, one on Tuesday morning and the other on Wednesday evening.

3/4/12; 7:00 PM EST =
2/29/12; 7:00 PM EST EOM =
2/28/12; 10:00 AM =
2/26/12; 7:00 PM EST = +76; signal line is +63
2/24/12; 3:05 PM EST = +76; signal line is +62

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