Keybot the Quant remains long. The market stumbled along sideways today as traders went into wait and see mode ahead of the Spain auctions, which should go off at 4 AM or 5 AM EST, only a few hours away. A significant development favoring the bears today was the CRB falling under 300, this signals that the economy is falling into disinflation. VIX and SOX will again determine broad market direction when the bell rings. Watch SOX 422.00, now bearish at 419.51. Watch VIX 19.00, now bulish at 18.64. Watch financials also, XLF 15.10, now bullish at 15.34.
For the SPX, starting at 1385, the bulls need to touch 1391, if so, the broad markets will accelerate upwards. The bears need to push down under 1383, if so, the broad markets will accelerate downwards. The Spain bond auctions, good or bad, will impact the futures and show the path forward. The bulls want to see six or more green points; the bears want to see two or more red points. Markets remain unstable. Caution is warranted and Europe will set the tone for tomorrow's trading.
4/22/12; 7:00 PM EST =
4/18/12; 11:55 AM EST = +30; signal line is +9
4/18/12; 11:32 AM EST = +16; signal line is +9
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