Wednesday, December 28, 2016


Keybot the Quant is on the bear side as of today. RTH teased the important 76.60 bull-bear line in the sand and bounced slightly to end the session with RTH at 76.64. Watch this Thursday morning since RTH under 76.60 will create more selling in the stock market. JJC under 28.32 will also create more market selling.

The bulls need UTIL above 660.10 to stop the selling in equities. If UTIL remains below 660 and RTH above 76.60, and JJC above 28.32, like now, status quo, stocks will stumble sideways with a slight downward bias. Listen for any positive or negative news concerning utilities, retail stocks and copper overnight for clues.

For the SPX starting at 2250 on Thursday morning, the bulls need to push above 2271, a 21-point move higher, to prove they have the beans to accelerate price far higher. The bears need to push below 2249, only one point lower, to accelerate the downside. Thus, watch the S&P futures overnight to see if any red is showing. Watch copper as well since that dictates the direction with JJC. A move through SPX 2250-2270 is sideways action for Thursday.

The market bears finally have the ball  back after the big Trump Rally. Will they run to victory or will they stumble then fumble? The algo number is 14 points below the signal line. Watch RTH 76.60 and UTIL 660; they will tell you what you need to know.

1/1/17; 7:00 PM EST EOM; EOQ4; EOH2; EOY =  
12/28/16; 9:50 AM EST = +68; signal line is +82; go short 2265; (Benchmark SPX for 2016 = +10.8%)(Keybot algo this trade = +2.8%; Keybot algo for 2016 = +17.6%)(Actual results this trade = +6.6%; Actual results for 2016 = +43.6%)

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