Keybot the Quant is short moving into the Friday session to end the week. Utilities, financials, commodities and volatility are key. The UTIL 491.68 number for this week expires today and will be replaced with 496.05 through next Friday. Thus, watch UTIL 496.05 and 494.50 as critical bull-bear levels for the next six trading sessions. Note how the utilities closed a hair higher above these danger levels already knowing this requirement is in place for next week. The broad indexes will sell off if UTIL drops under the 496.05 and potentially collapse into free fall if UTIL 494.50 fails. Bears also need XLF under 21.53, only seven pennies lower, to unleash market mayhem and negativity.
The bulls are simply trying to stop the downside momo and can accomplish this if GTX is pushed above 4780 and/or VIX below 13.67. So bears need lower utilities and financials and the bulls need higher commodities and lower volatility. For the SPX starting at 1828, the bears need to push under 1820 to keep the downside party going. S&P futures are -13 at this writing. The bulls need to recover yesterday's losses and regain 1842 to get their mojo back which will be difficult considering the drop in copper. A move through 1821-1841 is sideways action today. The bears are driving the bus and if utilities or financials fail as described above the caution flag will be removed. Bears need UTIL under 496.05 and/or XLF under 21.53 to sustain the downside market momentum. Bulls need VIX under 13.67 and/or GTX above 4780. The interplay of these four parameters dictate market direction.
1/26/14;
7:00 PM EST =
1/23/14; 10:45 AM EST
= +18; signal line is +42
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