Monday, June 6, 2011

STOCK MARKET BEARISH -- SHORT

Keybot the Quant remains short. The algorithm kicked out two numbers today around lunch time.  Volatility made an attempt lower but failed.  You knew this if you were watching the VIX 17.7 level.

The SPX dropped thru 1298 after the open so the downside was wide open.  1294 tried to hold up, then 1292, support levels gave way as the day progressed. SPX closed on 1286 support.

Watch the NYA 40 week MA cross closely. NYA is at 8116.  The 40 week MA is at 8004. The difference is only 112 points. This is serious business now. The NYA says we are in a secular bull now but if the NYA falls under the 40 week MA, the markets will have fallen into a secular bear market.

For the SPX tomorrow, the fun begins at 1286.  If the SPX moves above 1300, the market bulls are going to accelerate the indexes higher and put a temporary end to the recent bearishness with a quick recovery rally.  If the SPX drops under 1285 after the open, however, only one point lower, the market bears are not finished and they will accelerate the selling.  Support levels below 1286 are 1282, 1279 and 1270.

7/3/11; 7:00 PM EST =
6/30/11; 7:00 PM EST =
6/28/11; 10:00 AM EST =
6/26/11; 7:00 PM EST =
6/24/11; 10:00 AM EST =
6/19/11; 7:00 PM EST =
6/16/11; 9:00 AM EST =
6/12/11; 7:00 PM EST =
6/10/11; 10:00 AM EST =
6/6/11; 12:31 PM EST = -28
6/6/11; 12:14 PM EST = -14
6/5/11; 7:00 PM EST = -28
6/3/11; 2:58 AM EST = -28
6/3/11; 11:48 AM EST = -14
6/3/11; 11:35 AM EST = -28
6/3/11; 10:37 AM EST = -14
6/3/11; 9:00 AM EST = -28
6/2/11; 10:53 AM EST = -28
6/2/11; 10:32 AM EST = -14
6/1/11; 3:23 PM EST = -28
6/1/11; 2:57 PM EST = -14
6/1/11; 2:42 PM EST = -28
6/1/11; 11:34 AM EST = -14
6/1/11; 10:44 AM EST = +2; signal line is +5; go short 1331; (Benchmark SPX for 2011=+5.8%)(Keybot this trade=-0.3%; Keybot for 2011=+3.3%)(Actual this trade via SPY=-0.8%; Actual for 2011=-1.3%)

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