Tuesday, October 22, 2013

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

Keybot the Quant remains long but the algo wants to flip to the short side. Algorithm programming rules prevent the move yesterday since all the ducks are not lined up properly. If the SPX drops under 1741, and stays under, Keybot will likely flip short. S&P futures are flat at this writing about 5 hours before the U.S. opening bell. UTIL is under 498 and GTX is under 4888 creating a cap in the market upside as evidenced by the flat price action yesterday. Copper is key. Watch JJC 40.19, now at 40.48 causing broad market bullishness. If JJC fails at 40.19, it is highly likely that Keybot will be flipping short. The bulls need to keep JJC above 40.19 and move UTIL above 498 and/or GTX above 4888 and the upside equity party will continue.

For the SPX starting at new all-time highs at 1745, the bulls need to touch the 1748 to trigger an upside acceleration well into the 1750's. The bears need to push under 1741 to accelerate the downside likely targeting 1733 support. A move through 1742-1747 is sideways action for the Tuesday session. Keybot prints a pre-scheduled number before the opening bell today. Markets remain unstable. Bears should take control sub 1741 so this 1740-1741 area may be a battleground for the Tuesday session.

10/22/13; 9:00 AM EST =
10/21/13; 10:30 AM EST = +48; signal line is +57 but algorithm remains long
10/21/13; 9:30 AM EST = +62; signal line is +57
10/20/13; 7:00 PM EST = +78; signal line is +56

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