Sunday, October 20, 2013

STOCK MARKET BULLISH -- LONG -- CAUTION

Keybot the Quant remains long moving into the new week of trading. UTIL 498.03 is key this week and is set to cause bearishness at the opening bell, unless the bulls can push utilities higher. The market bulls must keep UTIL above 498 this week and then above 500 starting next week for one month forward, otherwise, the upside for the broad indexes will be capped at current levels. GTX 4888, JJC 40.19 and VIX 14.92 are all key areas and levels to begin the week. All three are bullish so bears need to reverse one or all three and will gain bear fuel depending on how many of the parameters turn negative, if any.

For the SPX at new all-time highs starting at 1745, the bulls only need to see a smidge of green in the futures and it is an upside party to begin the week with price hitting the 1750 handle. Bears need to keep the futures red and push the SPX under 1736 to accelerate the downside. A move through 1737-1744 is sideways action to begin the week. The bulls are in control but the algo is overbot. UTIL 498, GTX 4888, JJC 40.19 and VIX 14.92 dictate market direction. If any one of the parameters turn bearish, the algo will be in imminent turn status. If 2 of the 4 parameters turn bearish, and the SPX drops below 1736, and stays below, Keybot will likely flip short. Keybot prints two pre-scheduled numbers this week, one on Tuesday morning and one on Friday morning. Stay alert. Markets are very erratic, indecisive and unstable. The current price action has potential of printing a significant longer-duration market top in the coming days.

10/27/13; 7:00 PM EST =
10/25/13; 10:00 AM EST =
10/22/13; 9:00 AM EST =
10/20/13; 7:00 PM EST = +78; signal line is +56
10/18/13; 12:40 PM EST = +78; signal line is +55

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