Tuesday, August 11, 2015

STOCK MARKET BULLISH -- LONG -- CAUTION -- TURN MAY BE IMMINENT

Keybot the Quant remains long as the market theatrics continue. Volatility moves higher creating market selling pressure. The VIX takes out the critical 13.57 level ushering in the market selling. UTIL, however, remains above 587.61 and 590.04 so bears are unable to gain downside traction. Isn't it amazing that the algorithm can call out important key levels and areas in markets before they occur? In this case, UTIL 509.04 is key and price closes at 509.08.

If bears can push UTIL four pennies lower under 509.04, and the SPX under 2077, the algo will likely flip short. If UTIL fails at 587.61, the algo may immediately flip short. Thus, the imminent turn is in play. Bulls need to push VIX under 13.57 which will end the market selling and begin a rally in equities.

For the SPX starting at 2084 on Wednesday morning, the bulls need to touch 2103 to create an upside acceleration. Bears need to push under 2077 to accelerate the downside. A move through 2078-2102 is sideways action. The drama continues. Markets are unstable.

8/14/15; 10:00 AM EST =
8/11/15; 3:59 PM EST = +21; signal line is +11
8/11/15; 2:13 PM EST = +5; signal line is +11 but algorithm remains long
8/11/15; 11:28 AM EST = +21; signal line is +11
8/11/15; 11:16 AM EST = +5; signal line is +11 but algorithm remains long
8/11/15; 11:12 AM EST = +21; signal line is +12
8/11/15; 10:18 AM EST = +35; signal line is +12

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