Wednesday, September 7, 2016


Keybot the Quant remains short as the market drama continues. Keybot prints one number today placing the bears firmly back in the driver's seat but the stock market remains erratic. The market bulls need RTH above 79.49, now at 79.31, and, if the SPX also moves above 2188, Keybot will likely flip long. The market bears need RTH to remain under 79.49 to maintain downward pressure on the stock market. Higher volatility will also help the bears. Retail stocks are the number one influence on stock market direction currently so listen for any news that will send the sector one way or the other.

For the SPX starting at 2186, the bulls need two points, to push above 2188, and the upside will accelerate. The bears need to push below 2179 to accelerate the downside. A move through 2180-2187 is sideways action for Thursday. Markets may be waiting for the ECB rate decision and press conference on Thursday morning so S&P futures between 7:45 AM EST and 9 AM EST will tell the market  story. Bears remain in control. The bull-bear battle line is drawn at RTH 79.49 which decides who wins and loses on Thursday.

9/11/16; 7:00 PM EST =
9/7/16; 9:36 AM EST = +50; signal line is +64
9/6/16; 3:52 PM EST = +66; signal line is +66 but algorithm remains short

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