Wednesday, June 12, 2013

STOCK MARKET BULLISH -- LONG -- CAUTION -- TURN MAY BE IMMINENT

Keybot the Quant is long going into the Wednesday session. The drama with the utilities sector will continue today with UTIL 481.39 and 481.00 key lines in the sand (UTIL now at 482.15). The broad indexes will noticeably worsen if UTIL 481.39 fails and deteriorate rapidly if 481.00 fails. Of course, like yesterday, if the bulls can keep their head above water, and keep UTIL above 481.39, the broad indexes will recover and move higher. The bulls need to move commodities higher to receive upside fuel so watch GTX 4755 (now at 4691). If UTIL 481.39 fails, and the SPX drops under 1623, Keybot will likely flip to the short side. If the SPX stays above 1623 all day long, Keybot will likely remain long.

For the SPX today starting at the strong 1626-1627 support/resistance, the bulls need to touch the 1640 handle, 14 points higher, to accelerate the upside and signal the all-clear for bullish markets ahead. The bears have an easier road ahead only needing three points lower, to drop under 1623, to accelerate the downside which will likely tag 1618 and 1614 in short order. A move through 1624-1639 is sideways action today. The S&P futures are up +7 at this writing about six hours before the U.S. open. Utilities are key to market direction right now; watch UTIL 481.39 like a hawk today. The 10-year yield rising hurts utes and the yield is up a couple of ticks this morning to 2.21%. Keybot did not whipsaw since the move to the long side is now beyond 48 hours.

6/16/13; 7:00 PM EST =
6/14/13; 10:00 AM EST =
6/9/13; 7:00 PM EST = +36; signal line is +30

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