Monday, February 10, 2014

STOCK MARKET BULLISH -- LONG -- CAUTION

Keybot the Quant is long moving into the Tuesday session. Utilities and financials create the lift in equities today although markets only finished a hair above the flat line. For Tuesday, the bulls need XLF 21.37 and/or VIX 14.20 to send the SPX well above 1800. The bears need UTIL 504.65 to stop the market upside. XLF begins at 21.31 only six pennies on the bear side. Therefore, financials rule the roost and will dictate market direction. If a bull, you want to see XLF above 21.37 and you will dance a jig of joy. If a bear, you want to see XLF remain under 21.37 and you will sing a happy tune since the market upside is likely stalled.

For the SPX starting at 1800, closing at the highs, the bulls only need a smidge of green in the futures and the markets will launch higher with the SPX likely headed to 1808-1809 resistance in a heartbeat. The bears need to keep the overnight futures negative and during the trading session tomorrow must push the SPX under 1792 to accelerate the downside. A move through 1793-1799 is sideways action. The bulls are driving the bus and markets remain at an inflection point. Utilities, financials and volatility will tell the tale, especially the XLF 21.37 level at the opening bell.

2/14/14; 10:00 AM EST =
2/10/14; 1:07 PM EST = +16; signal line is -9
2/10/14; 12:17 PM EST = +0; signal line is -10

No comments:

Post a Comment

Note: Only a member of this blog may post a comment.