Wednesday, April 4, 2012

STOCK MARKET BEARISH -- SHORT

Keybot the Quant is short. The algorithm did not print any additional numbers after this mornings excitement.  In four short days, four sectors have moved into the bear camp causing the market weakness; CRB 312, UTIL 463, JJC 48.87; SOX 423.50. As long as the bears keep all four below the target levels identified by Keybot, the broad market selling will continue. Bulls need to move at least one higher to stop the selling.

Keybot is now tracking the financial and retail sectors as the next sectors to fail so look for more commentary on these if the broad indexes continue south.  For the SPX on Thursday, starting at 1399, under its 20-day MA, the bulls need to retrace today's selling and push the SPX back up to 1413, a formidable task, to reignite the bullishness.  The bears need to push five points lower to drop under 1394, if so, the downside will accelerate and surprise many bullish traders. The SPX would drop down for a test of 1389 support and probably get uglier from there. A move thru 1395-1412 is sideways action.

With the four sectors above in the bear camp, today was very surprising since the broad market selling should be much more serious. Markets remain unstable. The bears are cruising.

4/8/12; 7:00 PM EST =
4/6/12; 9:00 AM EST =
4/4/12; 11:44 AM EST = +14; signal line is +56
4/4/12; 11:04 AM EST = +30; signal line is +58

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