Sunday, May 28, 2017

STOCK MARKET BULLISH -- LONG -- CAUTION -- TURN MAY BE IMMINENT

Keybo the Quant remains long as Americans enjoy hamburgers, hotdogs and apple pie while waving US flags this weekend. US markets are closed until Tuesday morning in honor of Memorial Day tomorrow (Monday).

The market theatrics continue. Bulls and bears battle with the algo number only one point from the signal line verifying the tug-o-war fight. Financials and copper dictate broad stock market direction currently. The bulls need JJC to move up through 29.45 (now at 29.09) to signal the all-clear for upside in stocks and more new all-time record highs. GTX above 2287 (now at 2257) will also provide bull fuel.

Bears need to push XLF under 23.55 (now at 23.61 only 6 pennies above) to begin a forceful selling pattern in the stock market. The VIX moving above 11.77 (now at 9.81) will also provide bear fuel.

If the XLF falls under 23.55, or VIX above 11.77, either one would do although if the bears begin taking control the banks will likely fail first, and if the SPX drops under 2412, Keybot will likely flip short.

Watch copper trading overnight Monday into Tuesday morning since higher copper will place the stock market in party mode to begin the holiday-shortened week of trading. If copper is trading negatively, the market bears will smile.

For the SPX starting the week on Tuesday morning at 2416, the bulls only need one point of upside, to touch the 2417 level and bingo, price will be above 2420 in a flash moving higher printing new all-time highs. The bears need to push  below 2412 to accelerate the downside. A move through 2413-2415 is sideways action on Tuesday and since it is so tight a range, a winner will be decided either sub 2412 for happy bears or above 2416 for happy bulls.

The algorithm is beginning to flag utilities as a major player in market direction again but not quite yet. UTIL begins the week at 720 in a bullish pattern which helps create upside in the broad stock market. For the four-day trading week ahead, UTIL 672.16 and 678.00 are two key levels. With price at 720, the bulls are not worried about utes creating any stock market negativity.

However, for the following week, the week of 6/5/17, the two key UTIL levels are 699.49 and 678.00-ish. This is a whole new ball game. At 4 PM EST on Friday, 6/2/17, at the closing bell, watch to see where UTIL closes since under 699.49 will create negativity in the stock market starting 6/5/17. Utilities rallied strong last week since the bulls already know this situation is developing and they are trying to goose UTIL price higher to get it up and as far away from 699.49 as possible. Watch UTIL closely this week.

Keybot prints three pre-scheduled numbers this week; one on Tuesday, the EOM print on Wednesday and another number on Friday morning. XLF 23.55, JJC 29.45 and SPX 2412 tell you everything you need to know for broad stock market direction on Tuesday. The beat goes on.

6/4/17; 7:00 PM EST =
6/2/17; 9:00 AM EST =
5/31/17; 7:00 PM EST EOM =
5/30/17; 10:00 AM EST =
5/28/17; 7:00 PM EST = +70; signal line is +69
5/26/17; 10:00 AM EST = +70; signal line is +69

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