Sunday, November 6, 2016


Keybot the Quant remains short moving into the new week of trading. Bears need weaker banks and a weaker S&P 500 Index while the bulls need stronger semiconductors and NYA Index.

Bears need XLF under 19.46 and/or SPX under 2080 to cause market mayhem. Stocks will drop in earnest if either parameter fails. The SPX 2080 is extremely critical and can be considered a cliff edge for the stock market. Very bad things will happen to stocks if SPX 2080 fails.

Bulls need SOX above 805.20 and/or NYA above 10378. Either one would immediately stop the stock market selling and stabilize equity markets. If both parameters turn bullish, Keybot will be on its way to flipping to the long side. These four parameters will provide guidance for market direction all week long.

Also pay attention to UTIL 648.30 which is a trap-door for the stock market. If XLF loses 19.46, SPX loses 2080, and UTIL loses 648.30, the stock market can potentially crash.

Bulls need either stronger chips or a stronger NYSE Composite Index from the opening bell tomorrow morning to begin the week and stop the selling. You will immediately know the market direction forward by focusing on XLF 19.46 and SPX 2080 after the opening bell. Keybot prints one pre-scheduled number on Friday morning this week.

Anything can happen in markets this week since the new POTUS will be known Tuesday evening or early Wednesday morning. The stock market will react on Wednesday at 9:30 AM EST. S&P futures will react overnight Tuesday into Wednesday. The algo number is 24 points below the signal line placing the bears firmly in charge but caution is warranted due to the presidential election.

11/13/16; 7:00 PM EST =
11/11/16; 10:00 AM EST =
11/6/16; 7:00 PM EST = +3; signal line is +27
11/4/16; 3:30 PM EST = +3; signal line is +30
11/4/16; 3:21 PM EST = +19; signal line is +31
11/4/16; 3:09 PM EST = +3; signal line is +32
11/4/16; 12:02 PM EST = +19; signal line is +33
11/4/16; 11:46 AM EST = +19; signal line is +35
11/4/16; 11:17 AM EST = +19; signal line is +36
11/4/16; 10:22 AM EST = +3; signal line is +37

No comments:

Post a Comment

Note: Only a member of this blog may post a comment.