Tuesday, February 7, 2012


Keybot the Quant remains long. The algo continues to want to flip short but has not received the proper trigger signals yet.  The main tell today was the CRB staying elevated, closing at 315. This commodity strength brought the markets back up as the day played out.  Tech was not leading the markets today which is a sign of potential exhaustion.

The quant has only printed pre-scheduled numbers since 1/30/12, seven days ago! There has been no prints during trading hours for several days.  The utilities actually came close to breaking out to signal stronger market bullishness, but received a spank down before the day ended.

You know the drill.  Watch UTIL 453.69 and CRB 310.50. Above UTIL 453.69 and the bulls take markets another leg higher. UTIL staying under 453.69 and CRB over 310.50 results in more sideways slop for the broad indexes.  Failure of CRB 310.50 will result in substantial broad market selling.

For the SPX for Wednesday, starting at 1347 support, the market bulls have an easy road ahead only needing to punch up thru 1349 resistance to set off an accelerated move higher for the broad markets.  The market bears need to lose the 1336 handle, about eleven points lower, and that will trigger strong selling in the broad indexes. The SPX 1337 level is critical strong support, however, so if the 1337 would fail, the 1336 will likely give way as well. A move thru 1338-1346 is sideways action. Stay on guard for a potential turn at any time.

2/12/12; 7:00 PM EST =
2/10/12; 10:00 AM EST =
2/5/12; 7:00 PM EST = +48; signal line is +49 but algorithm says stay long
2/3/12; 9:00 AM EST = +48; signal line is +49 but algorithm says stay long

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