Genre trouble

I have completed the full draft of my novella for Rowan University Writing Arts thesis.  The draft still must be looked over by both advisors but I am thinking that the text should not be too problematic.  

 I was describing the novella to a friend of mine in which I could not pin point the genre of the piece.  I have been told by professors that this is a good thing (Genre fiction is the Devil. Formulaic stories are not well written stories); however, now I do not know how to describe the story and more importantly, I do not know which publishers/agents to send the material.  Presently, it seems that the novella is too dark for literary fiction and too deep to be considered horror. 

Literary psychological horror, maybe?