Sunday, April 29, 2012

STOCK MARKET BULLISH -- LONG -- CAUTION

Keybot the Quant remains long.  The Apple Rally last week saved the day and placed the bulls firmly in the drivers seat. The strength in utilities is very bullish.  UTIL moved from 449 to 470 in 12 days, 4.5%.  Bulls remain in control if utes stay flat or move higher. Even if the broad markets sell off, if utes remain elevated the selloff would be short-lived. As long as UTIL stays above the 450-455 zone for the next couple months the bulls are in good shape. Any price move down into and thru this zone spells trouble for markets.

Copper also ran higher, watch JJC 48.25, now at 48.98 in the bull camp. Keybot is scanning copper, semi's and commodities closely ahead of the new week of trading.  SOX is in the bear camp but only by three points.  Watch SOX 418.75, now at 415.91.  Watch CRB 311, now at 306. Bears need to drive JJC lower to send the broad indexes lower. Bulls need to move either SOX or CRB or both higher and the broad indexes will continue running higher. JJC and CRB are greatly affected by the dollar. The weak dollar last week helped boost copper back into the bull camp.  This week we see if there is strength to send the CRB higher, or not.

For the SPX, starting at 1403 strong support, the bulls need four points to touch 1407, the upside will accelerate to likely test 1413 R.  Watch the starting April number of 1408.47 since the EOM occurs at 4 PM EST Monday and this determines whether the markets finish with a positive, or negative, month.  The bears need to push downwards to 1397, if so, the downside will accelerate.  A move thru 1398-1405 is sideways action.  Markets are very unstable and erratic.  JJC, CRB and JJC will dictate broad market direction

5/6/12; 7:00 PM EST =
5/4/12; 9:00 AM EST =
4/30/12; 7:00 PM EST EOM =
4/29/12; 7:00 PM EST = +46; signal line 24
4/27/12; 10:00 AM EST = +46; signal line 22

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