Friday, October 25, 2013

STOCK MARKET BEARISH -- SHORT -- CAUTION

Keybot the Quant remains short moving into the Friday session. Thursday was uneventful with UTIL remaining above 498, SOX above 488.95 and JJC under 40.19; status quo so equity markets staggered sideways. Late-day, the bulls pushed copper higher which created market lift into the closing bell. For Friday, the same 3 parameters dictate market direction. Of great interest today will be the closing print for UTIL since it must move above 506.22 by 4 PM EST, otherwise, equities will be set for a weaker opening come Monday morning. The UTIL 506.22 is a firm number that remains in effect for all of next week. Bulls must move above UTIL 506.22 to keep equities moving higher. If UTIL drops below 500 and heads lower, this is a troubling signal for markets moving forward. UTIL must stay above 503 for the next solid month, otherwise, a ceiling will be placed on the market upside.

For the SPX today starting at 1752, the bulls need to touch the 1754 handle and price will leap higher quickly to test the all-time high at 1759. The bears need to push below 1746 to accelerate the downside. A move through 1747-1753 is sideways action. Watch UTIL 506.22 and JJC 40.19 today. Copper is weak in early trading. Bulls need JJC 40.19 and then UTIL 506.22 to signal continuing upside party time. Bears can initiate the downside with UTIL under 506.22 and SOX dropping under 488.95. If JJC moves above 40.19 while UTIL stays above 498 and SOX above 488.95, and the SPX moves above 1754, and all remain above, Keybot will likely flip to the long side. Copper is key. Keybot prints a pre-scheduled number this morning. S&P futures are flat to a hair negative at this writing about 4-1/2 hours before the opening bell.

10/27/13; 7:00 PM EST =
10/25/13; 10:00 AM EST =
10/23/13; 11:29 AM EST = +48; signal line is +59
10/23/13; 10:20 AM EST = +32; signal line is +59

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