Wednesday, June 6, 2012

STOCK MARKET BEARISH -- SHORT -- CAUTION

Keybot the Quant remains short as the tension builds ahead of the ECB Rate Decision and Press Conference before today's open.  The futures are up large as this is written. Watch the SPX 12 and 10-month MA's as resistance above, 1290.06 and 1296.96, respectively. The SPX closed directly on the 200-day MA so it appears that this important moving average may serve as support moving forward. Also watch the retail sector, RTH, now at 40.55. If the bulls move above 41, a substantial recovery rally will begin. If the RTH remains under 41, the market rallies are likely opportunities to bring on shorts.

For the SPX today starting at 1286, the bulls need to touch 1288, only two measley points higher, and the upside will accelerate. The futures currently show a bounce of about 14 points on tap. The bears need to move down into the 1270's to reignite market negativity. Keybot is idling along this week without printing any numbers so far, unimpressed with any of the sideways market gyrations, perhaps that will change today.

6/10/12; 7:00 PM EST =
6/3/12; 7:00 PM EST = -44 signal line -22

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