Thursday, February 2, 2017


Keybot the Quant remains short. The market action is wild. Note that UTIL came down to 655 but bounced. Then RTH moved above 76.55 and ends the session only 3 pennies away at 76.52 under 76.55. Isn't it amazing that the quant can identify these key areas and the exact levels before they occur? It is fascinating.

At any rate, the battle is at RTH 76.55 when the Friday morning bell rings. If RTH remains under 76.55 and drops lower, the bears are in good shape and stocks will retreat. If RTH moves above 76.55 and heads higher, the bulls are rallying the troops and stocks will move higher. If RTH moves above 76.55 and the SPX moves above 2284, Keybot will likely flip long. Hence, the imminent turn notation is placed in the title line.

UTIL 665 and 655 remain key for Friday, however, at 4 PM, the closing bell, the 655 number becomes useless and is replaced with 662.00. With UTIL starting at 662.23, the bulls need to push above 665 and the stock market will be rallying higher with traders celebrating into the weekend. If UTIL drops below 655, the stock market will begin falling like a rock.

At the closing bell, watch where UTIL closes since it provides a heads-up for next week. If UTIL finishes above the 662-665 area, the bears are toast and the bulls will rule the markets with a few weeks of upside ahead--as long as UTIL remains above 665 heading higher. If UTIL finishes the week below 662, the broad stock market will be in big trouble come Monday morning and may roll over and collapse.

For Friday with the SPX starting at 2281, the bulls need to push above 2284 to accelerate the upside. The bears need to push under 2272 to accelerate the downside. A move through 2273-2283 is sideways action to end the week. Watch RTH 76.55, UTIL 665 and 655, and SPX 2284. Keybot prints a pre-scheduled number tomorrow morning before the opening bell.

2/5/17; 7:00 PM EST =
2/3/17; 9:00 AM EST =
2/2/17; 1:39 PM EST = +68; signal line is +75
2/2/17; 10:51 AM EST = +84; signal line is +76 but algorithm remains short
2/1/17; 12:59 PM EST = +68; signal line is +77

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