Tuesday, June 19, 2012

STOCK MARKET BULLISH -- LONG -- CAUTION

Keybot the Quant remains long. Yesterday saw a battle for the NYA 40-week MA at 7668 and that battle will continue today. Volatility, VIX, dropped yesterday and this places a feather in the bulls cap. Watch VIX 18.90-ish level, now below at 18.32, which is bullish for markets. This is an important development so watch VIX 18.90-ish today. The bulls can bust the upside wide open right now. Watch SOX 383.50, the semiconductors, now at 380.55, only three points under. If the bulls push SOX above 383.50 another leg up will occur for the markets.  Watch XLF 14.43, now at 14.26. If the financials move above 14.43, another further leg upwards will launch for the broad indexes.

Thus, the markets are favoring the bulls these days. If the market bears want to prevent the upside from getting out of hand, they must keep the NYA under 7668 and push the VIX back above 18.90-ish. For the SPX today starting at 1345, the bulls need to see three green points, to punch thru 1348, and the markets will accelerate upwards. The bears need to push the SPX down to drop under 1334.50, if so, the markets will accelerate downwards.  A move thru 1336-1347 is sideways action. The bears need to make a move today otherwise the bulls are going to run much higher.

6/24/12; 7:00 PM EST =
6/19/12; 9:00 AM EST =
6/18/12; 2:46 PM EST = +0 signal line -19
6/18/12; 2:14 PM EST = +14 signal line -19
6/18/12; 2:11 PM EST = +0 signal line -20
6/18/12; 9:30 AM EST = -14 signal line -21

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