Sunday, March 12, 2017


Keybot the Quant remains short moving into the new week of trading. The bears are in control by keeping copper and commodities subdued with JJC under 30.42 and GTX under 2355. This keeps the bears in good shape unless both parameters would turn bullish again. One thing to watch is if copper rallies and JJC price begins jogging above and below the key 30.42 level since that will hint that the bulls are trying to get the model to flip bullish.

The market bears need RTH under 78.05 (lower retail stocks) and/or VIX above 12.71 (higher volatility) to create a strong leg lower in stocks. If both fail, the stock market will be falling like a rock. The epic Federal Reserve rate decision is on Wednesday afternoon this week.

For the SPX starting at 2373, the bulls need to touch the 2377 handle and bingo, price will be in the 2380's in a flash. The market bears need to push below 2363 to accelerate the downside quickly into the 2350's. A move through 2364-2376 is sideways action to begin the week.

Bulls need JJC above 30.42 which will stop the market selling. Bears need RTH under 78.05 and VIX above 12.71 which would create market carnage. Keybot prints two pre-scheduled numbers this week one on Thursday morning and the other Friday morning which is St Patrick's Day. If copper trades higher overnight tonight, that hints that the stock market may be buoyant on Monday.

3/19/17; 7:00 PM EST =
3/17/17; 10:00 AM EST =
3/16/17; 9:00 AM EST =
3/12/17; 7:00 PM EST = +70; signal line is +88
3/10/17; 9:00 AM EST = +70; signal line is +89

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