Wednesday, July 27, 2011

STOCK MARKET BEARISH -- SHORT

Keybot remains short to start the Wednesday session. The SPX dropped under 1331 yesterday so a quickie test of 1329-ish support occurred, but the bulls drove it up over 1331 again minutes later.  Just before the close the SPX dropped under 1331 once again but in a minute or two it was driven back above. Thus, the bulls defended that 1331 level to prevent a big drop in the indexes.

For the major sectors, semi's, financials, high volatility and commodites (ex-copper) are in the bear camp with utes, retail and copper in the bull camp.  Interestingly, retail is hinting that it wants to turn bearish while commodities want to join the bulls.  Watch CRB 349.5-ish level, if you see this taken out to the upside that tells you the indexes will receive buoyancy today. If CRB stays under 349.50 and retail is on the red side today, the markets will languish sideways to sideways down.

For the SPX today, the market bulls need to move six or seven points higher to tag 1338.50, if so, the buyers will come in force and drive the indexes several handles higher. If the market bears come to play and push under 1329.60, only two measly points (futures currently flat), the selling will accelerate thru 1329, and downward to test 1326, 1323, 1321. A move thru 1331-1337 is sideways slop. Markets are drifting along with this debt ceiling crisis. The algorithm did not print out any numbers after the pre-scheduled number yesterday, Keybot is simply idling along sideways for now, maintaining the short side.

7/31/11; 7:00 PM EST EOM =
7/29/11; 10:00 AM EST =
7/26/11; 10:00 AM EST = +4; signal line is +24
7/25/11; 9:30 AM EST = +4; signal line is +24

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