Keybot the Quant remains long. The bulls were driving the markets higher yesterday afternoon. Trader's are counting on Chairman Bernanke to hint about quantitative easing so the dollar weakens and copper and commodities run higher, taking the broad indexes higher. Thus, Bernanke's words today will greatly impact markets. The quant is tracking three main areas and levels; JJC 44.20 (now above adding market positivity), NYA 7748 (now below preventing the markets from moving higher) and CRB 293.80 (now above adding market positivity). The bears need JJC and CRB to drop, and this will occur with a stronger dollar, which will occur if Bernanke does not mention QE today. The bulls need to move the NYA above 7748 which will signal more market bullishness ahead and higher numbers for the broad indexes.
For the SPX today starting at 1354, the bulls only need three points higher, to push up and over 1357, and another upside acceleration will occur. SPX 1358-1360 is a resistance zone that would lead to 1366 if it gives way. The futures indicate a pop of about seven handles on tap for the S&P as this missive is written, about five hours ahead of the U.S. opening bell. The bears need to push under 1348.50, about five points lower, if so, that will ignite a downside acceleration. A move thru 1350-1356 is sideways action. The caution flag remains out due to the ongoing market instability and the potential for a wild market move as Bernakne speaks this morning.
7/22/12; 7:00 PM EST =
7/18/12; 9:00 AM EST =
7/16/12; 3:37 PM EST = +46 signal line is +18
7/16/12; 2:35 PM EST = +60 signal line is +17
7/16/12; 2:04 PM EST = +46 signal line is +15
7/16/12; 11:32 AM EST = +32 signal line is +14
7/16/12; 11:14 AM EST = +46 signal line is +13
Hello Guleen, Keybot is a robot so it has no allegiance to bulls or bears, it simply motors along in the most advantageous position. Chairman Bernanke speaks 10 AM EST and what he says, or does not say, may immediately impact markets and change the outlook. NYA 7748 tells a lot, above is bullish, below is market bearish.
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