Monday, November 5, 2012

STOCK MARKET BEARISH -- SHORT -- CAUTION

Keybot the Quant remains short thru the closing bell. The algo was very active today. This morning was a huge surprise since the utility and retail failures should have had the SPX moving well under 1400.  The bulls mount a comeback this afternoon but the SPX 1419 resistance held overhead. Tech, specifically semiconductors, were the bulls best friend this afternoon. For tomorrow, RTH 44.45 and SOX 378.60 tells you market direction. RTH is creating positivity while SOX is creating negatively. If RTH drops under 44.45, bears win. If SOX moves over 378.60, bulls win. RTH begins at 44.61 and SOX begins at 378.38, both only pennies from their respective goals.

For the SPX on Tuesday, starting at 1417, bulls need to touch the 1420 handle, if so, an upside market acceleration will occur, so watch for three or four green points in the overnight futures.  The bears need to push the SPX under 1408 to ignite a downside acceleration. A move thru 1409-1419 is sideways action. With higher volatility, the intraday and day-to-day market swings will become more violent.

11/11/12; 7:00 PM EST =
11/9/12; 10:00 AM EST =
11/5/12; 3:52 PM EST = -15; signal line is +7
11/5/12; 3:40 PM EST = +1; signal line is +10

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