Friday, February 15, 2013


Keybot the Quant is long moving into the Friday session. Excitement occurred yesterday as the utilities sector faltered but then recovered. The bulls are in control but the +79 number continues to indicate that markets are at or near a top. UTIL begins today at 471.02. The bulls are enjoying market buoyancy since UTIL is above 469.78 and 468.05. If these levels fail, the broad indexes will take a strong leg lower for each failure. Even though the current market rally is all sunshine and rainbows, if UTIL loses only three points, and if the SPX loses the 1514 level, it is very likely that Keybot will flip short, so the markets dance a finer line than most folks think. Interestingly, the utes are weak in European trading as this is typed. Also watch copper, JJC 46.50, another bull-bear line in the sand that would create broad market downside.

For the SPX today starting at 1521, the bulls need two points higher, to punch up through 1523, and an upside acceleration to 1530 will occur. The bears need to push under 1514, about seven points lower, to create a downside acceleration. A move through 1515-1522 is sideways action. Stay alert and pay attention to the utilities sector. A pre-scheduled number prints at 10 AM so the market action can be updated at that time.

2/15/13; 10:00 AM EST =
2/14/13; 1:17 PM EST = +79; signal line is +51
2/14/13; 1:07 PM EST = +63; signal line is +50

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