The Spain bailout occurs on the weekend and equity and commodity markets are moving higher although plenty of steam has leaked out over the last couple hours. Europe is attempting to call the bailout a 'line of credit' which only serves to verify its limited worth. As pointed out this morning, Spain yields continue higher, Europe will not be receiving a lot of bang for their buck. They need a bazooka and the bailout was a single-shot rifle. Markets may attempt to develop a sidways range in front of the Greece elections on Sunday. Traders will likely not want to push things too high, and also not push them too low, since the election outcome will be a watershed event in this ongoing European sopa opera. Thus, this week may be a great week for trading (large up and down spikes in an overall sideways range). Spain's bank audits are now projected to be released 6/21/12. Go long cans since they are in high demand as they are kicked down the road.
Sticking to the technicals, the NYA 40-week MA at 7645 is very important this morning. If taken out to the upside it proves the bulls have serious game and the markets will move much higher. If the bears can prevent 7645 they will be whistling dixie. The SPX S/R is provided a few messages back. Watch 1337, 1333, 1326, 1319, 1314 and 1307. Watch Keystone's SPX:VIX Ratio Indicator to see if it moves above 68 to signal a large up day and much more bullishness ahead. If bears keep the ratio under 68, they are whistling dixie once again.
The previous two charts posted also highlight two key tools to watch after the opening bell, the 200 EMA on the SPX 60-minute chart and the 8 MA and 34 MA cross on the SPX 30-minute chart. Watch the VIX to see if it drops lower to favor bulls or if it remains flat to up favoring bears. For OpEx weeks, Monday is typically a bullish day. The Apple Worldwide Developers' Conference will affect the tech sector today. A major Bradley turn occurs tomorrow with markets now in a window where a major market turn can potentially occur. The SPX is set to open up about five handles higher at this writing so watch the 1331, 1333 and 1337 resistance areas.
Perhaps time for Keybot to turn bearish?
ReplyDeleteHello Anon, the algo is idling along today without much going on. Focus on the retail sector--and big sales numbers are coming on Wednesday which is key--the RTH 41 level, now at about 41.54. If you see RTH drop under 41 that will start to indicate that Keybot is moving towards going short. Probably a lot of sideways slop ahead this week.
ReplyDelete