Wednesday, August 28, 2013

STOCK MARKET BEARISH -- SHORT -- CAUTION

Keybot the Quant remains short. The Tuesday session performs serious technical damage to markets. The retail and financial sectors are collapsing. Volatility spikes higher with the VIX well over 16. The algo idled along without printing any numbers after the pre-scheduled number. Keybot is tracking utilities and copper as the key directional influences on equities. Watch UTIL 483.32 (now causing market negativity at 479.35) and JJC 40.10 (now at 40.97 causing market bullishness). Thus, the bears need JJC under 40.10, and copper is weak in early trading today, to force equities another leg lower, while the bulls need to push UTIL above 483.32 to stop the downward slide in equities.

For the SPX starting at 1630, the bears only need one point lower, to drop under 1629, and the downside will accelerate. The bulls need to touch the 1653 handle to regain their mojo, a formidable task that appears unlikely, although you never know. A day may need to pass to settle the markets and the bulls will instead focus on trying to boost the utilities sector and keep copper elevated.  A move through SPX 1630-1652 is sideways action for Wednesday.

8/30/13; 10:00 AM EST =
8/27/13; 10:00 AM EST = -14; signal line is -2

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