Wednesday, September 25, 2013

STOCK MARKET BULLISH -- LONG -- CAUTION

Keybot the Quant is long moving into the Wednesday session. Market bears were given a second chance at the brass ring in a late-day sell-off yesterday, but, just like the morning action, the bears were not able to increase the negativity. This behavior sets up high drama for the Wednesday opening bell with financials and copper, XLF 20.01 and JJC 39.99, respectively, controlling market direction. XLF sits exactly on top of the 20.01 identified by Keybot as the bull-bear line in the sand. JJC is 40.03 four pennies above the critical 39.99 bull-bear line in the sand. So the day begins with both parameters in the bull camp creating market lift. Bulls will send markets higher if financials and copper remain buoyant. Bears will send equities lower if either parameter turns negative. Since XLF sits directly on top of the algo's number, the pivot in financials at the opening bell will send markets in the same direction. Copper is up in early trading which would send JJC higher maintaining bullishness.

VIX 14.67 remains important as well. Market downside will be locked in when the VIX moves above 14.67. If VIX remains under 14.67, beginning the day at 14.08, the bulls will remain in overall market control moving forward. For the SPX starting at 1697, the bulls need to touch the 1708 handle and it will be smooth sailing higher for equities. The bears need to push under 1695, only two points lower, to accelerate the downside which would tag 1691 in quick order. A move through 1696-1707 is sideways action. S&P futures are -4 as this is typed about 5 hours before the U.S. open. If both financials and copper turn bearish, and the SPX drops under 1695, and remains under, Keybot will likely flip short.

9/29/13; 7:00 PM EST =
9/27/13; 10:00 AM EST =
9/24/13; 1:18 PM EST = +64; signal line is +37
9/24/13; 10:00 AM EST = +48; signal line is +35

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