Tuesday, November 26, 2013

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

Keybot the Quant remains short, but wants to flip long, as the erratic and strange market behavior continues. If the SPX moves above 1808.10, and stays above, Keybot will likely flip long. The algo is tracking 4 key parameters currently; UTIL 490.68 (now at 493.88 causing market bullishness), SOX 498.52 (now at 504.01 causing market bullishness), VIX 13.90 (now at 12.79 causing bullishness) and JJC 39.80 (now at 39.42 causing bearishness). Thus, bears need lower utilities, semiconductors and/or higher volatility while bulls need higher copper, respectively.

For the SPX starting at 1802, the bulls need to punch up through 1808.10 and a big upside party results moving price towards 1815. The bears need to push under 1801 to accelerate the downside, only one point lower. A move through 1802-1807 is sideways action. S&P futures are dead flat at this writing about 5 hours before the opening bell. Keybot prints 2 pre-scheduled numbers today, one before the opening bell and the next shortly after. Keybot is on the verge of flipping long. If there is a gap-up opening, a timer may kick in prohibiting the algo from flipping long for about 90 minutes, but this does not appear to be the case. The bulls have it on a silver platter, all they need is SPX 1808+.

11/27/13; 10:00 AM EST =
11/26/13; 10:00 AM EST =
11/26/13; 9:00 AM EST =
11/25/13; 9:37 AM EST = +46; signal line is +37 but algorithm remains short

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