Monday, July 28, 2014


Keybot the Quant remains short moving into the Tuesday trading. The RTH turned bearish under 59.62 late-day on Monday creating equity weakness for the last one hour of trading. The VIX, however, prefers the bull camp at 12.56 remaining under the 12.69 bull-bear line in the sand. Retail stocks and volatility are the two major market direction forces currently. Thus, bears need VIX above 12.69 to claim victory and create sustainable downside selling. Bulls need RTH above 59.62 to pop the champagne corks and prove they have the beans to move equities higher. If RTH remains bearish, and VIX remains bullish, equities will stagger sideways.

For the SPX starting at 1979, the bulls need to move up through 1981.50, only 2-1/2 points higher, and bingo, an upside acceleration will occur to the mid and upper 1980's. The bears need to push under 1967.50 to regain their mojo and create a downward acceleration. A move through 1968-1981 is sideways action for Tuesday. Listen for any news concerning retailers, good or bad, that will influence RTH. Watch RTH 59.62 and VIX 12.69 since they dictate market direction. A pre-scheduled number will print tomorrow one-half hour after the markets open for trading.

7/29/14; 10:00 AM EST =
7/28/14; 2:34 PM EST = +34; signal line is +58
7/28/14; 1:46 PM EST = +50; signal line is +59

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