Tuesday, November 6, 2012

STOCK MARKET BEARISH -- SHORT -- CAUTION

Keybot the Quant remains short as the election results begin to come in Tuesday evening.  The algo printed a number at the opening bell today as the semiconductors, SOX, jumped above 378.60.  The bulls were running today and now the algo number is only five points away from the signal line.  Volatility is in play now. Watch VIX 16.00, now at 17.58 causing bearishness in markets. If the VIX drops under 16, Keybot will likely flip long.

For Wednesday, watch UTIL 466.36, SOX 378.60, RTH 44.45, VIX 16.00.  For the SPX starting at 1428, the bulls need to touch 1433.50 and that will trigger an upside acceleration. The 1429-1435 zone is strong resistance so a move up thru 1435 and the bulls will be running for an extended period of time. The bears need to push the SPX under 1417, if so, the downside will accelerate.  A move thru 1418-1432 is sideways action. Hang on to your hat. A turn may be imminent. Watch VIX 16 closely. The caution flag is needed. Markets are unstable and erratic. The presidential election hangs in the balance this evening.

11/11/12; 7:00 PM EST =
11/9/12; 10:00 AM EST =
11/6/12; 9:30 AM EST = +1; signal line is +6
11/5/12; 3:52 PM EST = -15; signal line is +7

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