Thursday, October 2, 2014


Keybot the Quant remains short moving into the Friday session. The algo prints three numbers during Thursday trading. Sure enough, the bulls ran retail stocks higher sending RTH above the 61.93 bull-bear line in the sand creating the lift in the broad indexes. Thus, bears need RTH under 61.93 to resume the market selling.

The bulls will focus on boosting XLF above 23.07 and/or NYA above 10630 to continue the upside market relief rally. So the bears need weaker retail stocks and the bulls need stronger financials and NYA Index. If all three parameters remain in their respective camps (retail is causing market bullishness and financials and NYA are causing market bearishness), status quo, then the stock market will stagger sideways to end the week.

Market direction will likely be determined by a fight between RTH 61.93 and XLF 23.07 so after the opening bell watch these two parameters since they will tell you the market answer.

For the SPX starting at 1946, the bulls need to push up through 1952 to accelerate the upside. The bears need to push under 1926 to accelerate the downside, a formidable task, so instead bears will focus on pushing retail stocks, financials and the NYA Index lower. A move through 1927-1951 is sideways action to end the week. The bears are driving the bus. Keybot prints a pre-scheduled number before the opening bell tomorrow morning.

10/5/14; 7:00 PM EST =
10/3/14; 9:00 AM EST =
10/2/14; 1:31 PM EST = -23; signal line is +16
10/2/14; 10:15 AM EST = -39; signal line is +19
10/2/14; 9:52 AM EST = -23; signal line is +22
10/1/14; 1:06 PM EST = -39; signal line is +24

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