Keybot the Quant remains short. The algo idled along yesterday without printing any numbers. The bulls can hang their tiny hats on two items that continue to hold up; the utilities sector remains elevated and the SPX 1294 danger level is not yet violated. The futures indicate a bounce is on tap today. The markets do need a relief rally since May has been nothing but downhill sledding thus far.
For the SPX today starting at 1305, closing at the lows yesterday, the bears only need a smidge of red in the futures and markets will tumble lower with the SPX dropping thru 1300, but, by the looks of the bullish futures, this is not on tap. The market bulls should receive a dead cat bounce today but would need to recover the critical 1326 resistance level to reignite bullish fun, a formidable task today. A move thru 1306-1325 is sideways action. Despite any rally today, the bears will likely maintain control moving forward. The caution flag remains out, however.
5/20/12; 7:00 PM EST =
5/16/12; 1:25 PM EST = -30 signal line -1
5/16/12; 9:00 AM EST = -16 signal line +1
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