Thursday, October 10, 2013

STOCK MARKET BEARISH -- SHORT -- CAUTION -- TURN MAY BE IMMINENT

Keybot the Quant remains short as the roller coaster ride continues. The algo is tracking many areas currently but it is easiest to boil it down to retail, RTH 54.79, and utilites, UTIL 483.63 and 485.90. The retail sector is creating bullishness but is on the ragged edge at 54.81 only 2 pennies from failure which will usher in market negativity. The utility sector is creating market bearishness but is also on the ragged edge at 483.16, only pennies from causing bullishness at 483.63 and then strong bullishness at 485.90. Thus, bears need to push RTH under 54.79 to create further market downside. Bulls need to push utilities higher to gain upside fuel. If UTIL moves above both the 483.63 and 485.90 levels, and the SPX moves above 1662.50, and all 3 parameters remain above, Keybot will likely flip long, hence the imminent turn notation is displayed.

For the SPX starting at 1656, the bulls need to push above 1662.50 to create an upside acceleration. The S&P futures are +13 as this message is typed about 4-1/2 hours before the opening bell which would handily blow through 1662.50. The bears need to push under 1646.50 to create a downside acceleration. A move through 1647-1662 is sideways action. Markets remain erratic and are news-driven due to the ongoing political turmoil from Washington, D.C. The bears are driving the bus but the bulls may wrestle back control today.

10/11/13; 10:00 AM EST =
10/9/13; 3:30 PM EST = -14; signal line is +6
10/9/13; 1:54 PM EST = +2; signal line is +8

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