Sunday, June 3, 2012

STOCK MARKET BEARISH -- SHORT -- CAUTION

Keybot the Quant remains short for the last month. The new week begins with the SPX 12-month MA at 1289.44 remaining a major interest of the algorithm.  A back test of this critical level would be in order. The broad indexes will continue to stumble sideways to sideways lower now that the SPX 12-month MA has failed. Watch the utilities sector, UTIL, the 453.34 level, closely. UTIL starts the week at 464.31 ten points above. If the utes remain elevated, the broad indexes are going to want to recover higher. If the utes roll over, that will be very detrimental to markets.  A loss of UTIL 453.34 will send markets drastically lower. Quantitative easing may occur at anytime and obviously when it is announced, the broad indexes will catapult higher.

For the SPX starting the week at 1278, closing near the Friday low, the bears only need to push under 1277 and another down leg will accelerate likely towards 1268 support. Pay attention to the futures overnight tonight. The bulls are simply trying to stop the bleeding and will try to prevent the SPX 1277 failure tomorrow. A move thru 1278-1308 is sideways action. Extreme caution is warranted since quantitative easing is now on the table. Watch for Japan currency intervention first since QE3 will then likely follow quickly thereafter. Keybot does not print any pre-scheduled numbers until next Sunday's number so the market action will dictate all the prints from the quant this week.

6/10/12; 7:00 PM EST =
6/3/12; 7:00 PM EST = -44 signal line -22
6/1/12; 9:45 AM EST = -44 signal line -21

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