Wednesday, January 14, 2015

STOCK MARKET BEARISH -- SHORT

Keybot the Quant remains short. The bears came to play today and whacked financials and semiconductors lower sending stocks lower. The algo idled along all day without printing any numbers. The bulls need either SOX 674.00 or XLF 24.23 to stop the downside selling. The bears need RTH 69.50 to create another down leg in stocks. If XLF and SOX turn bullish, and the SPX moves above 2018, Keybot will likely flip to the long side. If at least one of the two remain in the bear camp then the algo will probably remain on the bear side. 

For the SPX starting at 2011, the bulls need to touch 2018.50 and bingo, the upside will accelerate with a snap-back rally. The bears need to push below 1988.50 to accelerate the downside. A move through 1989-2018 is sideways action on Thursday. Watch semi's, financials and retail stocks. The VIX is up to 21.48 so the large intraday and day to day point swings will continue. If either XLF or SOX turn bullish, the caution flag will return if both turn bullish the imminent turn notation will return.

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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