Keybot the Quant is long and did not print any numbers yesterday. Copper broke out higher yesterday on the FOMC Minutes that says easing is coming sooner rather than later. Then, overnight, the China Flash PMI falls under 48 indicating far slower growth and demand occurring in China, but, this actually encourages traders to expect stimulus, so copper is up in early trading today as well. Watch JJC 43.61 as a bull-bear gauge and JJC is above 44 now, providing market bouyancy. Utilities continue to leak lower which is an ominous market signal. Watch UTIL 472, now at 475, only three points away. If UTIL 472 fails, the broad indexes will be selling off substantially. Market bulls must maintain UTIL above 472. The quant is now tracking semiconductors again, watch SOX 389, now at 399, breaking down thru the 400 level yesterday. If SOX 389 fails, the broad indexes will be selling off strongly. If JJC stays above 43.61, UTIL above 472 and SOX above 389, the bulls have no worries and will stay in control, cruising along merrily.
For the SPX in today's trade, starting at 1413, exactly where it started the day before as well, the bulls only need three points higher, to punch up thru 1416 and hold it a few minutes, and an upside acceleration will occur to 1419 and 1422 once again. The bears need to push seven points lower, under 1407, to accelerate a downside move that will likely fall thru the very strong 1406 and 1403 levels which leads to sub 1400 numbers. A move thru 1408-1415 is sideways action today. Markets are erratic and unstable. Exercise caution. Watch JJC 43.61, UTIL 472, SOX 389 and SPX 1416 and 1407 which dictate market direction today.
8/26/12; 7:00 PM EST =
8/21/12; 3:44 PM EST = +76; signal line is +48
8/21/12; 3:04 PM EST = +60; signal line is +48
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