Wednesday, September 23, 2015


Keybot the Quant remains short through the choppy market action. Utilities are the main parameter affecting market direction currently and also copper and retail stocks. The bears need to pull UTIL under 560.53 (now at 560.81) to create broad market negativity. The bulls must send utes higher. Yesterday price was playing around at this level; a level the algorithm called out on the weekend to watch all of this week.

The bulls need to push either RTH above 75.88 (now at 75.09) and/or JJC above 28.21 (now at 27.01) to signal the all-clear for the upside and a robust rally for stocks on tap. If either RTH or JJC turn bullish, either one would do, and the SPX moves above 1961, Keybot will likely flip to the long side.

Thus bulls are focused on pushing utilities, copper and retail stocks higher with the bears pushing the other way.

For the SPX starting at 1943, the bulls need to push above 1961 to accelerate the upside. The bears need to push below 1929 to accelerate the downside. A move through 1930-1960 is sideways action for Wednesday. The bears are driving the bus but the bulls are fighting back as evidenced by the algo number only 5 points under the signal line.

9/25/15; 10:00 AM EST =
9/22/15; 2:39 PM EST = -42; signal line is -37
9/22/15; 1:53 PM EST = -58; signal line is -37
9/21/15; 3:20 PM EST = -42; signal line is -35

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