Monday, September 23, 2013

STOCK MARKET BULLISH -- LONG -- CAUTION

Keybot the Quant remains long as the new week begins. Utilities fell at the opening bell but as soon as the 10-year yield fell the utes leap higher. UTIL is above both 483.53 (use this number instead of the 483.35; it is the 50-week MA) and 485.33 which helps the bull case. GTX collapsed through 4889 which creates bear fuel. VIX is fighting exactly on the 14.67 bull-bear danger line; the move in the VIX from here is very important. Up VIX means down markets and down VIX markets will recover. JJC is 40.35 well above the 39.97 bull-bear line. Financials are now tracked by the algo. Watch XLF 20.00 now at 20.12. A failure of XLF at 20.00 will substantially weaken equities. Bulls will be relaxed and unconcerned if VIX stays under 14.67 and XLF above 20. Thus, with UTIL in the bull camp, and GTX in the bear camp, watch VIX 14.67 and XLF 20.00 to determine market direction today.

The SPX failed under 1709 so price dropped to test the 1705-1706 support, and failed that level, now testing the 1698-1700 support. Bulls are in control but things are shaky. Volatility and financials will tell the tale today.

9/24/13; 10:00 AM EST =
9/23/13; 10:02 AM EST = +65; signal line is +32
9/23/13; 9:30 AM EST = +49; signal line is +29
9/22/13; 7:00 PM EST = +63; signal line is +27

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