Thursday, July 12, 2012

STOCK MARKET BEARISH -- SHORT -- CAUTION

Keybot the Quant remains short thru all the erratic market action yesterday.  Watch XLF 14.41 and VIX 18.75. Financials and volatility are steering the ship. If XLF stays above 14.41, the bulls will continue to prohibit the SPX from falling lower. If XLF 14.41 gives way, markets willl tumble lower. Likewise, only conversely since volatilty moves inverse to markets, if the VIX stays under 18.75, the bulls will continue to hold the markets up, but, if the VIX pokes above 18.75, then 19 and heads higher, markets will be selling off dramatically.

For Thursday for the SPX, starting the new trading day at 1341, the bulls need about five points higher, to touch the 1345 handle, and an upside market acceleratation will occur. The bears need to push the SPX under 1333 to begin a strong downward acceleration. If the important 1337 support gives way, the test of 1333 should quickly follow. A move thru 1335-1344 is sideways action. Caution is warranted. Markets are extremely unstable. S&P futures currently project a drop of about eight points at the open, four hours away as this missive is typed, which would place the SPX in the vicinity of the 1333 support area.

7/15/12; 7:00 PM EST =
7/13/12; 10:00 AM EST =
7/11/12; 3:02 PM EST = +16; signal line is +21
7/11/12; 3:00 PM EST = +2; signal line is +22
7/11/12; 2:24 PM EST = -14; signal line is +23
7/11/12; 2:14 PM EST = +2; signal line is +25
7/11/12; 11:30 AM EST = +16; signal line is +26
7/10/12; 3:56 PM EST = +0; signal line is +27
7/10/12; 2:19 PM EST = -14; signal line is +30

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