Tuesday, December 4, 2012

STOCK MARKET BEARISH -- SHORT -- CAUTION


Keybot the Quant is short going into the Wednesday session. Keybot prints one point above the signal line which places the quant in the position to go long but the algo remains short for now. This behavior shows the ongoing bull-bear struggle with both sides battling.  The drama will revolve around XLF 15.67 which will directly dictate broad market direction at the opening bell. If the XLF stays under 15.67, the markets move lower. If the XLF moves above 15.67, the markets will recover.  For the SPX, the bears need to push under the strong 1403 support and a downside acceleration will occur with the SPX dropping under 1400. The bulls need to push over 1413 and an upside acceleration will occur.  If the XLF moves above 15.67, and the SPX moves above 1413, Keybot will likely whipsaw from yesterday's move and flip long.  Otherwise, the bears will remain in control.  SOX 372.75 remains important as well. If Keybot remains short into and beyond lunch time then the quant will likely stay short for a few days time.

12/7/12; 9:00 AM EST =
12/4/12; 1:47 PM EST = +3; signal line is +2 but algorithm says stay short

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