Keybot the Quant remains long as the market drama continues. Keybot prints one number today before the closing bell. Utilities trend lower in the afternoon and lose the 658.55 level, called out by the algo ahead of time, by 20 cents, to 658.35. The bears are fighting back against the bulls.
The same utility and copper battle determines broad stock market direction ahead. Market bulls need UTIL above 658.55 which signals that the run to Dow 20K is full steam ahead. Market bears need to increase the negative pressure by sending UTIL under 656.19 and/or JJC under 28.33. The interplay of these three parameters determines market direction. If UTIL fails under 656.19 or JJC below 28.33, either one will do, and the SPX drops under 2265, Keybot will likely flip short.
For the SPX starting Thursday at 2265, the bulls need to push above 2271 to accelerate the upside. The bears need to push under 2265 to accelerate the downside. A move through 2266-2270 is sideways action but is such a tight range price will likely choose a direction. Watch those utilities. At the opening bell, bulls win big if UTIL pops above 658.55. Bears win big if utilities sink lower and lose the 656.19. Watch copper trading overnight for hints. The Dow 20K watch continues.
12/25/16;
7:00 PM EST =
12/23/16;
10:00 AM EST =
12/21/16; 3:59 PM EST
= +84; signal line is +72
12/19/16;
3:39 PM EST = +100; signal line is +71
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