Tuesday, July 17, 2012

STOCK MARKET BULLISH -- LONG -- CAUTION

Keybot the Quant remains long as the mid-week approaches. Note the large drop with the algo number at 10 AM EST.  This time corresponds to when traders realized that Chairman Bernanke was not endorsing QE.  The dollar popped and commodities, copper and the broad indexes sold off.  The selloff did not last, trader's believe that further Fed stimulus is coming in two weeks, perhaps a larger stimulus within six weeks.  For Wednesday, watch NYA 7749, CRB 293.80, both are now bullish, and JJC 44.20, which is bearish. Any changes to these three will send markets in that respective direction.  Note how the CRB fell today and bounced off the 293.80-ish level to recover the rest of the day.  How does Keybot know these numbers to watch ahead of time?

For the SPX starting at 1364, the bulls only need one and one-half point higher, to cross up and over the strong 1366 resistance, and a large upward acceleration should occur with the SPX headed to the 1370's in short order.  The bears need to retrace Tuesday's move and push under 1345, a formidable task.  A move thru 1346-1364 is sideways action. A pre-scheduled number prints tomorrow morning just before the bell so the action can be updated at that time.

7/22/12; 7:00 PM EST =
7/18/12; 9:00 AM EST =
7/17/12; 11:55 AM EST = +44 signal line is +21
7/17/12; 10:00 AM EST = +30 signal line is +20
7/17/12; 9:30 AM EST = +60 signal line is +19
7/16/12; 3:37 PM EST = +46 signal line is +18

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