Keybot the Quant is long to start the new trading week. The algo is tracking five areas of key interest that are most affecting the broad indexes right now; retail, financials, copper, commodities and the NYA Index. RTH 41.65, XLF 14.41, JJC 44.15 and NYA 7738 are contributing to the market positivity; CRB 295.50, commodities, are contributing negatively. Therefore, if the CRB moves above 295.50, the broad indexes will take another leg higher. If the commodities remain under 295.50, and one of the other four drop under the levels shown, the broad indexes will be in sell mode.
For the SPX starting at 1357, the bulls need to punch thru the 1358-1360 resistance zone and a test of 1366 should follow in short order. The bears are trying to stop the upside momo by pushing commodities and copper lower. Thus, watch the dollar closely, a stronger dollar will push the CRB and JJC lower favoring bears. A move thru 1336-1356 is sideways action. For Monday morning, CRB 295.50, JJC 44.15 and NYA 7738 are the most important gauges of market direction. To add to the drama, Retail Sales data is on tap which will immediately impact the RTH. The bulls are cruising.
7/22/12; 7:00 PM EST =
7/18/12; 9:00 AM EST =
7/15/12; 7:00 PM EST = +46 signal line is +11
7/13/12; 11:40 AM EST = +46 signal line is +10
Awesome analysis!
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