Keybot the Quant remains bearish moving into the Wednesday session. The markets are highly unstable and erratic. Financials broke down yesterday but recovered. To create market downside, the bears need to push the XLF under 17.21, then to gain even more bear fuel, push UTIL under 469. The bulls will fight back by keeping XLF and UTIL in the bull camp and at the same time push the VIX under 15.70. Lower volatility (VIX under 15.70) will signal that the bulls have a solid recovery rally in place.
For the SPX starting at 1497, the bulls need to touch the 1499 handle and hold it a few minutes. This would launch an upside acceleration to 1503 and/or 1505. The bears need to push the SPX lower to 1485. This would accelerate the downside towards testing the 50-day MA at 1478. A move through 1486-1498 is sideways action today. Watch XLF 17.21 closely at the opening bell.
3/3/13;
7:00 PM EST =
3/1/13;
10:00 AM EST =
2/28/13;
7:00 PM EST EOM =
2/26/13; 11:51 AM EST
= +33; signal line is +53
2/26/13;
11:13 AM EST = +17; signal line is +54
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