Tuesday, July 10, 2012

STOCK MARKET BEARISH -- SHORT -- CAUTION

Keybot the Quant remains short after another active day for the algorithm. NYA turned bearish at the open.  After lunch, financials rolled over.  Then volatility spiked higher later in the session.  VIX 18.75 and XLF 14.40 will play an important role on Wednesday. VIX is under 18.75 which creates market bullishness while XLF is under 14.40 which creates market bearishness. Whichever one flips sides, the broad indexes will follow that direction.

For the SPX starting at 1341, the bulls must touch 1362 to accelerate the upside, a formidable task. Instead, the bulls will simply try to move the XLF back above 14.40 to stop the bleeding.  The bears need to push the SPX under the strong 1337 support, if so, the downside will accelerate and 1300 will become a target for the days ahead. A move thru 1338-1360 is sideways action. Extreme caution is required.

7/15/12; 7:00 PM EST =
7/13/12; 10:00 AM EST =
7/10/12; 3:56 PM EST = +0; signal line is +27
7/10/12; 2:19 PM EST = -14; signal line is +30
7/10/12; 1:30 PM EST = +0; signal line is +33
7/10/12; 10:35 AM EST = +16; signal line is +36
7/10/12; 9:30 AM EST = +30; signal line is +37
7/9/12; 2:59 PM EST = +16; signal line is +38

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