Wednesday, November 20, 2013

STOCK MARKET BEARISH -- SHORT -- CAUTION

Keybot the Quant remains short as the market dramatics continue. UTIL stays under 503.04, now under 500, and SOX fails at 497.12 ushering in today's market weakness. VIX remains under 13.97 helping bulls. These 3 parameters remain key for Thursday. If they remain status quo, markets will float sideways. Bulls need either UTIL 503.04 or SOX 497.12 to send stocks higher.  Bears need VIX 13.97 to usher in the next leg lower for stocks. For next week, UTIL 481.68 is a key number, an easier level for the bulls. UTIL 489.85 is the trap-door number where bad things will happen to markets quickly. Therefore, as tomorrow and Friday plays out into the weekend, watch to see how UTIL reacts to the 481-489 price area.

For the SPX for Thursday starting at 1781, the bulls need to touch the 1796 handle to create upside mojo. Since this goal is 15 handles higher, a formidable task but not at all impossible, the bulls will be happy and content if either utilities or semiconductors recover as described above, to stop the market slide. The bears need to push under 1777 to accelerate the downside. A move through 1778-1795 is sideways action. The algo number is now 25 points under the signal line so the imminent turn notation is removed from the title line. The bears are driving the bus.

11/24/13; 7:00 PM EST =  
11/20/13; 2:43 AM EST = +14; signal line is +39
11/20/13; 10:43 AM EST = +30; signal line is +40

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