Keybot the Quant remains short thru the weekend. High drama as the SPX dropped lower to test the 1294 level mentioned in yesterday's missive. The SPX 12-month MA is a key line in the sand that signals secular bull markets versus secular bear markets. Many algorithm's, Keybot included, have this level programmed into the quant's. The SPX 12-month MA is 1291.73 (this number continually changes as the moving average is continually recalculated--before yesterday it was at the 1294 level). Thus, the 1292 is a critically important level and if it fails, a whole new round of secular bearishness begins and the markets can be expected to be weak for weeks and months ahead.
So get some rest this weekend since Monday we find out if failure occurs at 1292, or not. The week ahead will be set up with key sectors and levels to watch once the Sunday number prints tomorrow. The bears are cruising.
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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