Tuesday, September 30, 2014


Keybot the Quant remains short moving into the Tuesday session. The bears have a strong hold on the markets despite the S&P futures +7 about 3-1/2 hours before the opening bell. Higher utilities and lower volatility will float markets higher. The bears need lower financials, XLF under the 23.05 bull-bear line in the sand, to create more selling pressure. Lower semiconductors, retail stocks and NYA index will also help the bears.

For the SPX starting at 1978, the bulls need to push above 1981, only three points higher, to create an upside acceleration that will attack the strong 1985-1988 overhead resistance area. The +7 in the S&P futures hint that the SPX will immediately attack the 1985-1988 resistance gauntlet after the opening bell. The bears need to push under 1964 to accelerate the downside, a formidable task, so instead bears will concentrate on sending utes and financials lower and keeping volatility elevated. A move through 1965-1980 is sideways action but it looks like the bulls are going to run today. Keybot prints a pre-scheduled number this morning and another this evening for the EOM and EOQ3.

10/3/14; 9:00 AM EST =
9/30/14; 7:00 PM EST EOM EOQ3 =
9/30/14; 10:00 AM EST =
9/29/14; 9:36 AM EST = +27; signal line is +38
9/28/14; 7:00 PM EST = +43; signal line is +38 but algorithm remains short

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