The algo remains short. The rally party did not last long for the bulls. The utilities, UTIL, closed at 413.09, falling back below the 50 week MA at 413.71 as the closing bell rang. This is a bearish sign for the markets. Watch UTIL at the opening bell tomorrow. If 413.71 is regained then the bulls will try to push things higher again. If UTIL does not regain 413.71, then the bears remain in full control and the broad markets will continue along sideways to sideways lower.
For the SPX tomorrow (Friday), starting at this critical support/resistance level at 1172-ish, if the market bulls can push upwards to hit 1186, the buyers will jump in and accelerate the move several handles higher in quick order. If the market bears can keep UTIL under the 50 week MA as described above, weakness will remain in the markets. The bears, however, need to push the SPX down to the 1121 area if they want to accelerate the move lower and see heavy selling pressure enter the market. If 1121 is hit, 1118 and 1112 would be hit in short order, perhaps also a test of the 1101 LOD from Tuesday.
8/21/11; 7:00 PM EST =
8/16/11; 9:00 AM EST =
8/14/11; 7:00 PM EST =
8/12/11; 10:00 AM EST =
8/11/11: 3:58 PM EST = -88
8/11/11: 3:31 PM EST = -72; signal line is -39
8/8/11: 9:30 AM EST = -88
8/7/11; 7:00 PM EST = -72; signal line is -32
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