Sunday, September 16, 2012

STOCK MARKET BULLISH -- LONG -- CAUTION

Keybot the Quant is long going into the new week of trading. The previous post outlined the interest with the utilities sector. Watch UTIL 478.48, SOX 393.50 and VIX 18.25. Semi's and volatility take a back seat to the importance of the utes. For the SPX for Monday, starting at a lofty 1466, the bulls need to push up thru 1474.50 and it is more smooth sailing higher, the SPX will test 1479 in quick order then set its sights on 1481 and 1485.  The market bears are beaten badly over the last couple weeks, hit with Draghi's bazooka, stomped by the German ESM vote and then finished off with Bernanke's bazooka, but, markets ebb and flow like the ocean waves on and off the beach.  The bears need to push down thru 1460 to accelerate a downside market move and stop the bleeding. The SPX would test the 1457, 1455 and 1453 support levels in short order.  A move thru 1461-1473 is sideways action for Monday.

Tomorrow is a very important day. The bazooka's have fired and now the smoke is clearing.  In a nutshell, it appears that if the SPX falls under 1460 tomorrow, Keybot will likely flip to the short side.  Therefore, watch the overnight futures market with interest to see if the bears can muster up about 6 or 7 negative points.  If the SPX stays above 1460, the markets will manage to move sideways all day.  If the SPX stays above 1460, and UTIL moves abvove 478.48, the bulls will truly be on a bee-line to 1500 plus. As long as UTIL remains under 478.48, as it is now, the markets will exhibit weakness.  At the opening bell, Keybot's algo number will likely fall under the signal line so if the internal programming rules line out properly, the move to the short side would be triggered. Keybot prints only one pre-scheduled number this week on Wednesday morning. Remain cautious, do not take the upside for granted. The bears will have their day in the sun if they can push under SPX 1460.

9/23/12; 7:00 PM EST =
9/19/12; 9:00 AM EST =
9/16/12; 7:00 PM EST = +76; signal line is +63
9/14/12; 10:00 AM EST = +76; signal line is +63

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