Wednesday, May 30, 2012

STOCK MARKET BEARISH -- SHORT -- CAUTION

Keybot the Quant is short to start the Wednesday session.  The algo idled along yesterday without printing any numbers after the pre-scheduled number printed. RTH moved above 41.15 which caused the bullish thrust yesterday, closing at 41.59, but with futures poised to give back yesterday's gains, watch the RTH closely again today. If RTH drops under 41.15 the markets will take a leg lower. If this fails, watch the SPX 1295 level since this represents the cliff edge for markets. If happy news comes out of Europe, which is hard to imagine, but if it does, and RTH stays above 41.15, watch NYA 7646 (now at 7615) since that will signal that the bulls are in full control and a substantial market rally is occurring. Considering the souring market mood today, this outcome does not appear to be on tap. If the NYA moves above 7646, Keybot will likely move to the long side. Otherwise, Keybot appears to be content with staying short, remaining on the bearish side for about three and one-half weeks.

For the SPX, starting at 1332, the bulls need to touch the 1335 handle and the markets will accelerate skyward. The bears need to push under 1319 and the downside will accelerate. A move thru 1320-1334 is sideways action today. Note that with a ten point drop projected by futures currently, this would still leave the bears three points shy of the 1319.  Volatility remains high, markets remain unstable.

6/3/12; 7:00 PM EST =
6/1/12; 9:00 AM EST =
5/31/12; 7:00 PM EST EOM =
5/29/12; 10:00 AM EST = -14 signal line -10

2 comments:

  1. I have known very important things over here. I admire the valuable advice you make available in your expertly written content. I want to thank you for this informative read; I really appreciate this post and recommend it.
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    ReplyDelete
  2. Hello Gurl, danke for the kind comments. The markets remain very unstable and tricky to maneuver; it is helpful to have Keybot as a guiding light thru the mess.

    ReplyDelete

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