Keybot the Quant remains long on this eve before the jobs report. The intense ongoing bull-bear fight is verified by the closeness of the algo number and signal line number, only three ticks apart. Weak copper and semi's hurt the markets today. The SPX 1394 support collapsed so price accelerated lower. Watch XLF 15.20 and VIX 18.10. Copper, commodities and semiconductors are in the bear camp creating market negativity. If either the XLF drops below 15.20 or the VIX moves above 18.10, Keybot will likely flip short.
For the SPX starting at 1392, the bulls need to touch 1403 and the markets will accelerate higher into the weekend. The bears need to move under the 1389 level to accelerate the downside. The 1385-1388 support zone is a sturdy confluence that includes horizontal support levels and the 20 and 50-day moving averages and will likely fail if the 1389 level fails. A move thru 1390-1402 is sideways action.
Of course at 8:30 AM EST, the Jobs Report, the futures will indicate if the bulls win with a projection to 1403, or the bears win with a projection to 1389, or neither which continues the sideways markets. If the markets sell off and the financials or volatility turn bearish, as described above, the markets will be in serious trouble and cascading lower. If market selling occurs but the financials and volatility remain bullish, the bears got nothing, and markets will moderate higher by days end. A pre-scheduled number occurs at 9 AM EST so the market action can be updated just before the opening bell.
5/6/12; 7:00 PM EST =
5/4/12; 9:00 AM EST =
5/3/12; 9:30 AM EST = +30; signal line +27
5/2/12; 10:40 AM EST = +46; signal line +27
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