Tuesday, October 16, 2012

STOCK MARKET BULLISH -- LONG -- CAUTION

Keybot the Quant is long going into the mid-week Wednesday session. The bulls have pushed the markets 30 handles higher in only two days, retracing much of the near 50-handle drop that occurred over the previous six days; the behavior follows an approximate 62% Fibonacci retracement.  No additional numbers printed today after Keybot flipped long this morning. UTIL closed at 480.41 two points above the 478.43 danger line. Watch SOX 386, now at 380.  The SOX is the only major sector contributing bearishly to markets so the bulls need to see 386 for the broad indexes to move substantially higher. Watch VIX 16.50, JJC 46.30 and RTH 44.45 that continue along contribuiting bullishly to markets. The bears need to push thru any of the three values listed to create negativity.

For the SPX for Wednesday, starting at 1455, the bulls have the easy road once again, only needing a tiny smidge of green to show up in the futures, if so, and the SPX moves above 1455.50 after the opening bell, the markets will accelerate higher once again to 1457 and 1460.  The bears need to push under the strong support at 1440 to restart the negativity.  A move thru 1441-1454 is sideways action ahead of the European Summit on Thursday.  Keybot prints a pre-scheduled number tomorrow at 9 AM so the action can be updated at that time. The markets probably have further surprises ahead this week.

10/21/12; 7:00 PM EST =
10/17/12; 9:00 AM EST =
10/16/12; 9:31 AM EST = +60; signal line is +56; go long 1446; (Benchmark SPX for 2012 = +14.9%)(Keybot this trade = +0.4%; Keybot for 2012 = +15.6%)(Actual this trade = +0.5%; Actual for 2012 = +9.3%)

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