Tuesday, January 13, 2015

STOCK MARKET BEARISH -- SHORT -- CAUTION

Keybot the Quant remains short after another wild day. The Dow reversed 425 points from the high to the low intraday. The bulls flinched with the semiconductors collapsing in the afternoon; the SOX drops under 674.20 creating market negativity.

For Wednesday, the bulls need either SOX above 674.20 or XLF above 24.24 to stop the market selling. If both SOX and XLF turn bullish, Keybot may flip back to the bull side. To add to the drama for Wednesday, JPM and WFC report earnings at 7 AM and 8 AM, respectively, and the results will directly impact XLF either exalting it higher to test the critical XLF 24.24 level, or, send financials lower with stocks selling off in earnest. Check how the XLF is trading pre-market since it will tell you the broad market direction.

For the SPX starting at 2023, the bulls need to touch the 2057 handle to regain their mojo, a feat that appears unlikely but in this market who knows? The bears need to push the SPX under 2008 to accelerate the downside. A move through 2009-2056 is sideways action for Wednesday. If either SOX or XLF turn bullish consider the imminent turn notation to be back in the title line. The bears are driving the bus but both bulls and bears have their hands on the steering wheel wrestling for control. SOX 674.20 and XLF 24.24 will tell the story.

1/16/15; 10:00 AM EST =
1/13/15; 1:25 PM EST = +3; signal line is +33
1/13/15; 9:36 AM EST = +19; signal line is +35

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