Monday, July 29, 2013

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

Keybot the Quant remains long as the markets meander through the day. Semi's failed today at SOX 471.15 (use this number rather than the 470.70 mentioned previously) which ushers in the market negativity. Right now SOX is wrestling at 471.15 deciding if it will make a come back or if it will collapse.  The algo number is under the signal line so Keybot is ready to trigger to the short side but is held back since other internal programming rules are not yet satisfied. One of the main criteria today is that the SPX needs to print under 1676 to trigger the move to the short side but the LOD thus far is 1681.86 remaining five points above.

Watch SOX 471.15 since this will directly tell you if equities will move higher, or lower, into  the closing bell. If SOX stays under 471.15, and the SPX drops under 1676, Keybot will likely flip to the short side, hence, the imminent turn notation is in the title line. Bears are making a move but they still do not have all the juice they need. VIX is 13.43 near the lows for today well under the 14.26 bull-bear line in the sand continuing to help the bulls. Bears will definitely lock in the market downside if VIX exceeds 14.26. If SOX moves back above 471.15 and VIX stays under 14.26, the bulls will not be too worried and the algo number should recover higher.

7/30/13; 10:00 AM EST =
7/29/13; 11:06 AM EST = +34; signal line is +37 but algorithm says stay long
7/28/13; 7:00 PM EST = +50; signal line is +36

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