Friday, December 27, 2013


Keybot the Quant remains long as the bulls continue the upside market orgy in thin trading. The key parameters currently tracked by the algo continue to maintain status quo so the sideways to upward bias markets continue. The surprise is the extent of the price thrust higher. Utilities are the top parameter in focus currently. UTIL is 487.12. For this week, ending today, the bulls need UTIL 493 and higher to signal extended broad market upside ahead and the bears need UTIL under 477 to begin market selling. Price remains between the two parameters so there is very little impact on equities. For next week, however, the UTIL 477 number becomes meaningless and is replaced by 485.33. This is important since price is less than two ticks above. Watch UTIL into the closing bell today. If UTIL closes above 485.33, Monday will continue the bull party higher. If UTIL closes below 485.33, the market bears will show up first thing on Monday morning to flex their muscles in the broad indexes.

For the SPX starting at 1842, the bulls need less than one point higher, to touch the 1843 handle, and the upside acceleration continues. The bears need to drop below 1835 to accelerate the downside. A move through 1836-1842 is sideways action. The bulls are in charge but markets remain erratic and unstable.

12/29/13; 7:00 PM EST =
12/23/13; 10:00 AM EST = +61; signal line is +38

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