Tuesday, November 17, 2015

STOCK MARKET BEARISH -- SHORT -- CAUTION -- TURN MAY BE IMMINENT

Keybot the Quant remains long moving into the Wednesday session. The algo was very active printing seven numbers on Tuesday and was threatening to go long but did not. The imminent turn notation is in the title line since the bulls have it within grasp. The SPX 2050.68 level is key. Price is at 2050.44 only 24 pennies away. Price is under so it creates market negativity. Whichever way SPX pivots is extremely important since this level can be considered a cyclical bull-bear market level. Bulls win big above 2050.68 and bears win big below.

If the SPX tags 2051 and higher and the VIX drops under 18.35, Keybot will likely flip long. If RTH moves above 76.01 that will also create strong upside bull fuel. The bears need weaker financials; the XLF under 23.87 to create more downside pressure. If SPX remains under 2050.68, and VIX above 18.35 and RTH under 76.01 and XLF above 23.87, the stock market will stagger sideways. One of these four parameters will flinch, especially the SPX 2050.68 since it has to pivot one way or the other, and this tells you a lot about the market direction forward. Keybot prints a pre-scheduled number before the opening bell.

For the SPX starting at 2050, the bulls need to touch 2067 to regain their mojo. The bears need to push under 2046 to accelerate the downside into the 2030's in quick order. A move through 2047-2066 is sideways action.

11/18/15; 9:00 AM EST =
11/17/15; 2:50 PM EST = -25; signal line is -2
11/17/15; 2:32 PM EST = -11; signal line is +1
11/17/15; 2:27 PM EST = +3; signal line is +2 but algorithm remains short
11/17/15; 10:32 AM EST = +19; signal line is +4 but algorithm remains short
11/17/15; 10:20 AM EST = +3; signal line is +5
11/17/15; 10:05 AM EST = -11; signal line is +6
11/17/15; 9:37 AM EST = +3; signal line is +9
11/16/15; 3:09 PM EST = -11; signal line is +10

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