Wednesday, April 9, 2014

STOCK MARKET BULLISH -- LONG -- CAUTION

Keybot the Quant is now back on the bull side of the boat after today's FOMC-induced orgy. XLF is above 21.88 and VIX is under 14.58 creating bullishness. The algo has shifted its interest and is now tracking the retail sector as the key metric concerning market direction. Watch RTH 59.49. Price is now at 59.40 only nine pennies away and causing bearishness. The bulls receive upside fuel and continue sending equities higher if RTH moves above 59.49. If the RTH remains under 59.49 and moves lower the upside move in equities will stall.

For the SPX starting at 1872, the bulls only need less than one point, to push higher towards 1873 and the upside party will accelerate, so watch the overnight futures to see if the bulls will succeed, or not. The bears need to retrace today's move and push under 1852, a formidable task, so instead bears will focus on holding the line at RTH 59.49 since that will cap the market upside. A move through SPX 1853-1872 is sideways action.

4/13/14; 7:00 PM EST =
4/11/14; 10:00 AM EST =
4/9/14; 12:22 PM EST = +47; signal line is +41; go long 1859; (Benchmark SPX for 2014 = +0.6%)(Keybot this trade = +0.9%; Keybot for 2014 = +4.6%)(Actual this trade = +0.6%; Actual for 2014 = +4.1%)

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