Sunday, September 29, 2013

STOCK MARKET BEARISH -- SHORT -- CAUTION

Keybot the Quant is short moving into the new week of trading. XLF 20.01 was key last week and remains key this week. Very simply, equity markets will tumble lower if XLF 20.01 is lost, but will recover and float higher if XLF remains above 20.01. UTIL 471.77 and 483.57 are important and price starts out in the middle of these two key numbers. The 483.57 carries a lot of bull-bear clout this week. GTX 4889 is important. GTX begins at 4876 causing bearishness in the broad indexes. Markets will remain weak if VIX stays above 14.67, now at 15.46. Thus, pay most attention to XLF 20.01 (now causing bullishness), UTIL 483.57 (now causing bearishness) and GTX 4889 (now causing bearishness).

For the SPX starting at 1692, bulls need to touch the 1696 handle and a big upside equity party will result. The bears need to push under 1687 to accelerate the market downside. A move through 1688-1695 is sideways action for Monday. If either UTIL moves above 483.57, or GTX above 4889, the imminent turn status will return to the title line since the algo will likely be positioned for a flip back to the long side. If the SPX moves above 1696 and higher with stronger utilities (UTIL 483.57) and commodities (GTX 4889), Keybot will likely flip long. If XLF drops under 20.01, the broad indexes will start accelerating downwards in earnest. An exciting week is ahead with the bears driving the bus to begin the journey. Keybot prints two pre-scheduled numbers this week, one on Monday evening, and one on Friday morning. Markets remain erratic and indecisive. Anything can happen especially with the political clown show over the Continuing Resolution (CR) to fund the government hitting the fan tomorrow.

10/6/13; 7:00 PM EST =
10/4/13; 9:00 AM EST =
9/30/13; 7:00 PM EST EOM =
9/29/13; 7:00 PM EST = +18; signal line is +44
9/27/13; 11:51 AM EST = +18; signal line is +45

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