Wednesday, June 5, 2013

STOCK MARKET BEARISH -- SHORT -- CAUTION -- TURN MAY BE IMMINENT

Keybot the Quant remains bearish moving into the Wednesday session. The algo wants to flip to the long side as shown by the higher algo number but internal programming rules will not trigger the move as yet. If the SPX touches 1647 today and stays above, Keybot will likely flip long. The printout below shows the oscillating drama yesterday. It appeared a no-brainer that Keybot would flip long but that was not the case due to the weakness in utilities. UTIL 480.83 will dictate market direction today. If UTIL stays above 480.83, the bulls will keep pushing markets higher aiming for SPX 1647. If UTIL 480.83 fails, the broad indexes are in serious trouble and market selling will increase.  The UTIL 477.91 remains as a trap-door for markets all this week.  If UTIL 477.91 fails, the markets will drop into a mini free-fall with the SPX likely losing from 10 to 20 handles quickly.

For the SPX today starting at 1631, the bulls need to touch the 1647 handle and it will be off to the races higher. The sturdy 1649-1650 resistance will likely give way in quick order and the SPX will move up into the 1650's.  The bears need to push under 1624 today to accelerate the downside which will likely tag 1618 in short order. A move through 1625-1646 is sideways action today. In a nutshell, UTIL 480.83 provides the market answer today. Markets remain erratic and very unstable and need to make an up or down decision.

6/9/13; 7:00 PM EST =
6/7/13; 9:00 AM EST =
6/4/13; 3:27 PM EST = +52; signal line is +38 but algorithm says stay short
6/4/13; 1:28 PM EST = +36; signal line is +38
6/4/13; 12:41 PM EST = +52; signal line is +38 but algorithm says stay short
6/4/13; 12:04 PM EST = +36; signal line is +37
6/4/13; 9:37 AM EST = +52; signal line is +38 but algorithm says stay short
6/3/13; 10:08 AM EST = +36; signal line is +37

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