Tuesday, July 3, 2012

STOCK MARKET BULLISH -- LONG

Keybot the Quant is bullish as the holiday approaches. The algo was very active yesterday especially considering that the markets are moving into the holiday where calmer action would be expected. Note how the quant prints numbers which results in the signal line ratcheting up each time. The higher the signal line moves the closer the algo comes to flipping back to the short side. The caution flag is not displayed, however.  If semiconductors show weakness after the open, with SOX dropping under 383.50, the caution flag will be waved. Also watch NYA 7719, now well above at 7832. Although not expected today, if both the semi's and NYA lose the levels shown, Keybot would be in position to move back to the short side.

For the SPX today starting at 1366, again closing near the highs like Friday, the bulls need less than one green point in the futures and the market upside will accelerate when the opening bell rings, likely testing the important 1370-1372 level. The bears continue to try and stop the bleeding. Today the bears will attempt to push the SPX under 1356, if so, the downside will accelerate. A move thru 1357-1364 is sideways action. An early market close is on tap today ahead of the holiday tomorrow so low volume sideways action would be anticipated. Today may be the calm before the storm on Thursday (ECB) and Friday (Jobs Report).

7/8/12; 7:00 PM EST =
7/6/12; 9:00 AM EST =
7/2/12; 2:47 PM EST = +30; signal line is +17
7/2/12; 2:10 PM EST = +46; signal line is +15

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