Wednesday, November 14, 2012


Keybot the Quant remains short and did not print any numbers yesterday. The bears explored the lower side of the current SPX range of 1369-1391, and the bears explored the upper side, in the Monday session. The U.S. futures are elevated as this is typed with the S&P's up about ten.  SPX 1369 remains as the cliff edge for markets.  Ditto NYA 8002.  The NYA fell to 8004 at yesterday's open but immediately bounced, now at 8023. Big trouble occurs if either SPX 1369 or NYA 8002 is lost. Bulls will create a recovery rally if they can prevent these danger levels from triggering. Watch VIX 16, now at 16.65. Bulls will stage a recovery rally if they move the VIX under 16.

For the SPX starting at 1375, the bulls need to touch the 1389 handle, if so, an upside acceleration will occur.  Thus, ten points will not do it, the bulls need about 14 points and more. The bears need to drop under 1371, only four points lower, and a downside acceleration will occur for markets with an immediate test of the 1369 cliff edge which will likely fail if 1371 fails. A move thru 1372-1388 is sideways action.

11/18/12; 7:00 PM EST =
11/11/12; 7:00 PM EST = -46; signal line is -18

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