Keybot the Quant starts the Thursday session on the long side. The algo flipped long yesterday so today and tomorrow must be watched closely to see if a whipsaw occurs back to the short side. The retail sector, RTH, pushed higher yesterday supplying bull fuel. If RTH stays above 41, the bulls will keep the broad markets buoyant. If the RTH falls under 41, the broad indexes will take a leg lower.
Watch NYA 7644, now at 7517, about 130 points below. If NYA 7644 is taken out to the upside this will create a strong market push higher and the bulls will be in firm control moving forward. Bears must prevent NYA 7644 from occurring while at the same time driving RTH under 41 and the SPX downwards under 1293. For the SPX today starting at 1315, closing at the highs yesterday, the bulls only need to see a smidge of green in the futures and another upside acceleration should occur. Futures have been green overnight as well as now so the bulls look to continue the party, but the open remains three hours away.
The bears are simply trying to stop the upward momo today by pushing the RTH under 41. A move thru SPX 1286-1314 is sideways action. Chairman Bernanke is speaking this morning after the opening bell. Markets are already starting to price in stimulus so he had better deliver juicy dovish statements or the markets will quickly sour. Extreme caution is warranted.
6/10/12; 7:00 PM EST =
6/6/12; 11:02 AM EST = -14; signal line is -23; go long 1305; (Benchmark SPX for 2012 = +3.7%)(Keybot this trade = +5.6%; Keybot for 2012 = +7.2%)(Actual this trade = +5.4%; Actual for 2012 = +7.4%)
6/6/12; 10:52 AM EST = -14 signal line -23 but algorithm says stay short
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