Tuesday, March 4, 2014

STOCK MARKET BULLISH -- LONG -- CAUTION

Keybot the Quant remains long. The bulls stage a strong recover rally after the market drubbing the day before. The bears need weaker financials, to drive the XLF under 21.47, but instead price continues higher now at 21.97. Bulls need VIX under 13.97 but price remains in bear territory at 14.10. With such a huge up day the bulls should have pushed volatility lower. If VIX falls under 13.97, equities will continue higher with SPX 1880+ a done deal. Bears must hold the line at VIX 13.97 and also hold the line with copper at JJC 39.65.

For the SPX starting at a new all-time high at 1874, the bulls only need two points, to punch up through 1876 and 1880+ is next. The bears will fight to prevent SPX 1876 and VIX 13.97 to stop the market upside. A move through SPX 1850-1875 is sideways action. The bears need XLF lower to turn things around so considering the big up in XLF today, the imminent turn notation is removed for now. The bulls are cruising but stay alert and cautious since the algo number is only 3 points from the signal line and the markets are very erratic and unstable.

3/7/14; 9:00 AM EST =
3/3/14; 12:18 PM EST = +48; signal line is +45
3/3/14; 12:06 PM EST = +32; signal line is +44 but algorithm remains long
3/2/14; 7:00 PM EST EOM = +48; signal line is +44

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