Keybot the Quant is short into the weekend. The markets moved sideways yesterday teasing the SPX 1403 support for an instant but bouncing. The XLF came down for a LOD at 15.69 very close to the 15.60 which would cause the markets to drop another leg lower. The SPX would drop under 1400 if XLF fails. For the utilities, that continue to lead the broad markets lower for the last three months, UTIL is firmly bearish at 475, well under the 489.34 number of interest for all next week. UTIL 465 (50-week MA) represents a trap-door for the broad indexes where the markets will typically go into free fall should it occur.
On the bull side, the RTH pushed up into the 44.40's teasing the 44.47 number the bulls need to stop the recent downside, but the bulls did not have enough oomph. Likewise, the bulls could not bring the GTX (commodities) above the 4895 level to lock in a rally. Next week's levels of interest and SPX levels for Monday can be set up once the Sunday number prints tomorrow.
10/28/12; 7:00 PM EST =
10/26/12; 10:00 AM EST = -15; signal line is +34
10/25/12; 9:43 AM EST = -16; signal line is +37
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