Thursday, January 8, 2015

STOCK MARKET BEARISH -- SHORT

Keybot the Quant remains short moving into the Thursday session. The algo idled along during Wednesday without printing any numbers. XLF remains under 24.26 and SOX under 671.80 so the stock market rally is a dead-cat bounce. However, the bulls want to keep pushing higher with S&P futures +14 so the same scenario is on tap today. As stocks rally after the opening bell, watch the two parameters above to gauge the strength. If neither turn bullish then stocks will reverse and sell off. If one parameter turns bullish the upside move in stocks has additional room to run. If both turn bullish, the rally will strengthen significantly to the upside.

For the SPX starting at 2026, the bulls need to touch the 2030 handle to create an upside acceleration and the futures are indicating this is a done deal. The SPX 50-day MA is at 2042. The bears need to retrace yesterday's rally, a formidable task especially with the futures running higher, so instead the bears will try to keep XLF and SOX in the bear camp with all their might. The bears are driving the bus.

1/11/15; 7:00 PM EST =
1/9/15; 9:00 AM EST =
1/6/15; 9:42 AM EST = +3; signal line is +43

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