Tuesday, June 17, 2014

STOCK MARKET BULLISH -- LONG -- CAUTION -- TURN MAY BE IMMINENT

Keybot the Quant remains bullish as the bull-bear struggle continues; evidenced by the tiny two-tick difference between the algo number and signal line. The algo is tracking retail and copper with interest. The bulls need JJC 37.55 to take the SPX back to the all-time highs. The top number affecting market direction currently is RTH 58.98. Price is 59.08 one dime in the bull camp creating market lift. The reatail sector carried the broad indexes higher during the last hour of trading yesterday. If the RTH drops under 58.98, and the SPX drops under 1931, Keybot will likely flip short. The bears would also benefit if the VIX moves above 13.75 (now at 12.75 creating lift in equity markets).

For the SPX starting at 1938, the bulls need to push up through 1941 and 1949 will print in quick order. The bears need to push under 1931 to accelerate the downside. A move through 1932-1940 is sideways action. Markets may meander sideways considering the Fed decision and press conference is on tap tomorrow afternoon. S&P futures are -4 so if the bears can create a few more points of negativity and punch RTH in the gut, they may finally be able to flip Keybot to the short side. RTH 58.98 provides the market directional answer today. The turn to the short side remains imminent.

6/22/14; 7:00 PM EST =
6/17/14; 9:00 AM EST = +63; signal line is +61
6/16/14; 3:03 PM EST = +63; signal line is +61
6/16/14; 11:35 AM EST = +47; signal line is +60 but algorithm remains long

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