Thursday, July 26, 2012

STOCK MARKET BULLISH -- LONG -- CAUTION

Keybot the Quant is long as the smoke continues to clear after a circus of a day.  The algo was very active today printing twelve numbers. The market bulls gathered further strength into the close.  NYA punched up thru the level of interest at 7756.53 but in the final minute closes under by a smidge at 7754.51.  The NYA 7756.53 will immediately dictate broad market direction at tomorrow's opening bell. Copper has not bought into the rally as yet. Watch XLF 14.45, now at 14.48 influencing the markets positively. XLF 14.45 will dictate market direction at the opening bell. The third item the quant is fixated on is the semiconductors, SOX 375.30, now at 375.54 influencing the markets positively. SOX 375.30 will dictate market direction at the opening bell.

For the SPX starting at 1360, the bulls need to touch 1363 and an upside acceleration party will occur with price immediately attacking the strong 1366 resistance level and likely moving up and through.  The bears will simply try to stop the upside momo by keeping NYA bearish and forcing XLF and SOX to the bear side as described above.  A move thru 1340-1362 is sideways action for Friday. Exercise caution moving forward. Bulls will win tomorrow if they move the NYA higher. Bears will win if they move the XLF and SOX lower. The pre-scheduled number prints at 10 AM EST so the market action can be updated at that time.

7/29/12; 7:00 PM EST =
7/27/12; 10:00 AM EST =
7/26/12; 3:59 PM EST = +46; signal line is +24
7/26/12; 3:38 PM EST = +60; signal line is +25
7/26/12; 3:26 PM EST = +46; signal line is +24

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