Thursday, July 19, 2012

STOCK MARKET BULLISH -- LONG -- CAUTION

Keybot the Quant remains long.  The algo printed a number at the opening bell today and then idled along the remainder of the session. China hinted at lowering the triple R's, which is an easing measure, so copper exploded higher overnight last night thru today's trading. This copper, and commodity strength, creates bullish markets. The quant is tracking SOX 378 (now at 371 creating market negativity), XLF 14.45 (now at 14.60 creating market positivity) and JJC 44.20 (now at 44.88 creating market positivity). The bulls need the SOX over 378 and the SPX will be on its way over 1400. The bears will try to prevent SOX 378 with all their might while at the same time driving the XLF and JJC under the levels shown.

For the SPX for Friday, starting at 1376.51, the bulls need to push up and over 1380, if so, an upside acceleration will likely occur with the SPX testing 1385 in quick order.   The bears need to push under 1371, only five points lower, and a downside acceleration will occur with the SPX testing 1366 in quick order. A move thru 1372-1379 is sideways action. The caution flag remains out. Markets are extremely unstable currently and susceptible to an extreme shock. Vigilance is required. That said, the bulls are cruising.

7/22/12; 7:00 PM EST =
7/19/12; 9:30 AM EST = +60 signal line is +26
7/18/12; 9:00 AM EST = +44 signal line is +23

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