STOCK MARKET BEARISH -- SHORT

Keybot the Quant remains short motoring along all day without printing any numbers. The RTH did not move above 44.47 after the opening bell, preferring the bear camp instead and remaining there all day long leaking lower into the closing bell.  The GTX remains under 4895 as well so the bears are on easy street. The bulls need to overcome one of those levels to move the markets higher.  Another down leg will occur in the markets if the XLF falls under 15.60, now at 15.84. As mentioned over the last few weeks, the utilities sector topping in late July and leading the broad markets lower is ominous.  UTIL is at 474 and had a 473 handle today.  Remember, the 50-week MA, now at 465.05, represents a trap-door for the broad indexes. If UTIL loses nine points and falls thru 465, it is very likely that the broad indexes will go into free fall in very short order. Thus, lots of potential excitement is ahead.

For the SPX starting at 1409, the bulls need to touch the 1420 handle to create an upside acceleration. The bears have an easy road to hoe only needing to drop under 1407, less than two points lower, to create a downside acceleration.  A move thru 1408-1419 is sideways action. The bears are cruising along.

10/28/12; 7:00 PM EST =

10/26/12; 10:00 AM EST =

10/23/12; 3:31 PM EST = -16; signal line is +41

10/23/12; 2:39 PM EST = +0; signal line is +44