Saturday, June 1, 2019


Keybot the Quant remains short printing a couple numbers on Thursday and a couple more on Friday including the pre-scheduled number. The bears remain in control with the algo number 32 points below the signal line.

Commodities tank bigtime hinting that a disinflationary and deflationary vibe is in play (think recession). The SPX lost the critical 2779-2782 level so it was lights out. Goodnight Irene, Irene goodnight.

The utilities are the last man standing. Bears would be in better shape if the utes rolled over ahead of the broad stock market. Utilities have been soft during the market softness but do not show the weakness expected that would lead to a multi-month decline for the broad stock market. Bears need the utes to collapse asap. Utes are holding up due to the drop in rates.

Bears will need weaker utilities to create market carnage and open the door to a potential crash scenario. Bulls need to keep utes elevated and jam the SPX above the 2779-2782 level as soon as possible. Each hour, each day, the S&P 500 remains below 2779 is another nail in the bull's long-term (weeks and months ahead) coffin.

The SPX loses -6.6% in May. Ouch. What a beating. That's gonna leave a mark.

6/2/19; 7:00 PM EST EOM =
5/31/19; 10:00 AM EST = -20; signal line is +12
5/31/19; 9:36 AM EST = -20; signal line is +15
5/30/19; 3:51 PM EST = -6; signal line is +17
5/30/19; 3:41 PM EST = -20; signal line is +18
5/29/19; 3:40 PM EST = -6; signal line is +19

No comments:

Post a Comment

Note: Only a member of this blog may post a comment.