Keybot the Quant remains short. The algo did not print any numbers during the session today. UTIL and CRB are in the bear camp and will increase broad market negativity. The CRB came up for two back tests of 312 today before stumbling lower. JJC closed with a 49 handle by only two pennies, but remains a dollar away from where it can hurt the markets. Keybot keeps increasing its interest in the semiconductors. The algo is watching the SOX 425 level and the low today was a 429 handle. If 425 fails, the broad indexes will noticeably sell off. Thus, the bears are cruising as long as CRB stays under 312 and UTIL stays under 463.
For the SPX on Wednesday, starting at 1413.38, the market bulls need to push the SPX up to touch the 1419 handle, if so, the upside will accelerate and the bull party will resume. The market bears need to push down under 1405, the same level as last evening's missive. Note that price came down to tap on 1405 support, collapsing thru but only for a few minutes before recovering. If price would have sustained a few more minutes under 1405 the broad indexes would have sold off far greater than even the lows of the day. If the bears can push down under 1405 and hold it there about ten minutes, the downside should accelerate for the markets. A move thru 1406-1418 is sideways action.
Markets remain unstable. It is interesting to see the SPX back down to near where Keybot entered short last Thursday after the index ventured up and over 1422 yesterday. Focus on CRB and UTIL, if they remain bearish, keep an eye on SPX 1405, JJC 49 and SOX 425 for further signs of market weakness. Bulls can wrestle back control by moving the CRB back above 312 or UTIL above 463.
4/8/12; 7:00 PM EST =
4/6/12; 9:00 AM EST =
4/3/12; 8:00 AM EST = +46; signal line is +64
4/2/12; 2:13 PM EST = +60; signal line is +64
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