Tuesday, January 7, 2014

STOCK MARKET BEARISH -- SHORT -- CAUTION

Keybot the Quant remains short moving into the Tuesday session. Keybot wants to go long but is held back by internal programming rules not yet satisfied to permit the move. To keep things simple, if the SPX moves above 1837, and stays above, Keybot will likely flip long. The bears could not gain downside traction since the bulls are stepping on the neck of volatility keeping the VIX under 14.11. UTIL moved above 482.19 closing the trap-door. Bears could not take advantage of the weak utes but price is only 11 cents on the bull side and the bears could easily push UTIL under 482.19 again. The stealth negative move yesterday was in retail. The algo is now tracking RTH 59.89 as a priority and price is at 59.98, only 9 pennies above this critical bull-bear line in the sand. Thus, equities will float sideways to sideways higher if bulls maintain UTIL above 482.19, VIX below 14.11 and RTH above 59.89. Bears will growl if any 1 of these 3 stooges turn bearish and markets become more bearish if 2, or all 3, parameters turn bearish.

For the SPX starting at 1827, the bulls need to push up through 1837 to accelerate the upside back to the all-time highs at 1850-ish. The bears need to push under 1824 to accelerate the downside. A move through 1825-1836 is sideways action. S&P futures are +7 about 2 hours before the opening bell. The bears are driving the bus, for now.

1/10/14; 9:00 AM EST =
1/6/14; 1:59 PM EST = +49; signal line is +44 but algorithm remains short
1/6/14; 10:51 AM EST = +33; signal line is +43

Note Added 6:57 PM on 1/7/14: Looking back, forgot to attach the imminent turn status note in the title line but that was obvious since the SPX only needed to move above 1837 to flip long, which it did today at 10 AM.

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