Saturday, January 4, 2014

STOCK MARKET BEARISH -- SHORT -- CAUTION

Keybot the Quant remains short through the first weekend of the new year. Volatility could not make up its mind today with the VIX moving above and below 14.12 sending the markets in the opposite direction each time. UTIL closes at 481.40. This is extremely significant. UTIL's trap-door for equities is open. If the VIX would have stayed above 14.12, the broad indexes would have finished far lower on Friday. UTIL 482.19 is critical next week. Bears will be fine moving forward with weak utilities. UTIL 480.00 will replace 482.19 as the key level for the week of 1/13/14. Thus, pay close attention to UTIL 480.00-482.19 for the next couple weeks. If this zone fails, markets will be in serious trouble. If UTIL recovers and moves higher, up and away from 482, the bulls will be pushing markets higher and the bears will fold like a cheap suit.

The algo has raised the priority on copper so utilities, volatility and copper will dictate market direction come Monday. Note the collapse in commodities, GTX. Next week's areas and levels of interest can be identified once the Sunday pre-scheduled number prints tomorrow.

1/5/14; 7:00 PM EST =
1/3/14; 12:23 PM EST = +33; signal line is +41
1/3/14; 11:51 AM EST = +19; signal line is +41
1/3/14; 9:36 AM EST = +33; signal line is +41

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