Friday, October 12, 2018

STOCK MARKET BEARISH -- SHORT -- CAUTION

Keybot the Quant remains short as the wild market action continues. Keybot prints six numbers in the Thursday session and the bears continue running the show with the algo number 27 points below the signal line. Two major negative levels have been crossed in markets; NYA 12806 and SPX 2745. If prices remain below these levels the stock market is in serious trouble for weeks and months to come.

The bears need weaker copper, commodities and utilities to create further downside carnage. Bears need CPER under 17.34 now only 2 cents on the bull side at 17.36. Bulls obviously need to push copper higher. Copper futures are down -0.2% as this message is typed; the price action is along the flatline overnight.

The bulls need SPX above 2745 as soon as possible to stop the stock market bleeding. This level will at least stop the market selling and stabilize the situation. If the S&P 500 comes up to kiss the 2745 and rolls back over lower, the stock market can potentially experience a crash event.

If bulls attain the SPX 2745 level and hold it, they can probably flip Keybot back to the long side if either NYA moves above 12806 and/or XLF above 27.97. Q3 bank earnings begin in a couple hours and will send XLF wildly up, or down.

If CPER falls below 17.34, stocks will continue sideways to sideways lower. If SPX moves above 2745, the stock market will stabilize into the weekend. If the SPX regains 2745, and either NYA moves above 12806 and/or XLF above 27.97, consider the imminent turn back to the long side to be in play. Keybot prints a pre-scheduled number later this morning. The beat goes on.

10/14/18; 7:00 PM EST =
10/12/18; 10:00 AM EST =
10/11/18; 3:50 PM EST = +10; signal line is +37
10/11/18; 3:21 PM EST = +24; signal line is +38
10/11/18; 3:12 PM EST = +10; signal line is +39
10/11/18; 3:03 PM EST = -6; signal line is +41
10/11/18; 2:41 PM EST = +10; signal line is +44
10/11/18; 9:36 AM EST = +24; signal line is +46
10/10/18; 2:46 PM EST = +8; signal line is +47

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