Wednesday, May 16, 2012

STOCK MARKET BEARISH -- SHORT -- CAUTION

Keybot the Quant remains short. Tuesday was another active day for Keybot with four numbers printing. In the afternoon the algo number went negative once again.  The retail sector is key the last few days since it is one of the legs of the wobbly stool supporting the markets. Major retailers, such as JCP last evening, are running out of gas so RTH should stay under 41.38 helping the market bears, but, expect anything in these markets.

A watershed event occurs yesterday with the NYA piercing the 40-week MA at 7628. This signals that the broad markets are falling into a secular bear market pattern. Price did not hold under 7628 and printed 7635.81 at the close. Watch this closely today. If NYA drops under 7628, the market bearishness will increase substantially moving forward.

For the SPX starting at 1331, the market bulls need to push higher and touch 1345 to accelerate the markets higher, a formidable task. Since the broad indexes closed near the lows, the bears only need a couple points lower, to push under 1328.50, and the markets will accelerate lower.  A move thru 1330-1344 is sideways action. Futures are paring losses but the S&P's are showing that they want to test the 1328.50 when the bell rings. RTH 41.38, UTIL 451.36, NYA 7628 and SPX 1295 are key levels to monitor. Markets remain highly unstable and erratic. Caution is warranted. Keybot prints a pre-scheduled number in about five hours so the pre-market action can be updated at that time.

5/20/12; 7:00 PM EST =
5/16/12; 9:00 AM EST =
5/15/12; 2:29 PM EST = -16 signal line +3
5/15/12; 11:39 AM EST = +0 signal line +5
5/15/12; 11:05 AM EST = -16 signal line +7

No comments:

Post a Comment

Note: Only a member of this blog may post a comment.