Monday, December 9, 2013

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

Keybot the Quant remains long moving into the Tuesday session. The algo has a wild start to the week printing 8 numbers today. The bulls remain in the drivers seat and need higher utilities and commodities, UTIL 492.05 and GTX 4811, respectively, to push markets higher. The bears need lower copper and higher volatility, JJC 39.65 and VIX 14, respectively, to push markets lower. If all 4 parameters remain status quo, equities will stumble sideways. If either JJC moves below 39.65 or VIX above 14, and the SPX moves under 1806, and stays under, Keybot will likely flip short. This is a very easy threshold to cross so stay alert during the trading hours ahead; the imminent turn status is very pertinent; Tuesday may be an important market day.

For the SPX starting at 1808, the bulls need to push up through 1811.50 and an upside acceleration will occur to immediately test the 1814 all-time high which will likely give way with new highs printing and the SPX moving to the 1820's. The bears need to push under 1806, only 2 points lower, and the downside will accelerate with a drop back below 1800 likely in short order. A move through 1807-1811 is sideways action.

12/15/13; 7:00 PM EST =
12/9/13; 2:26 PM EST = +46; signal line is +39
12/9/13; 2:14 PM EST = +60; signal line is +39
12/9/13; 1:38 PM EST = +46; signal line is +38
12/9/13; 1:18 PM EST = +60; signal line is +38
12/9/13; 12:35 PM EST = +46; signal line is +37

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