Wednesday, October 22, 2014


Keybot the Quant remains long. The algo prints two numbers today around lunch time. The financials, XLF, punched up through 22.90 but could not hold it and once the banks rolled over the broad market followed along lower. XLF 22.90 remains key. Also SPX 1897. Bulls need to move the XLF above 22.90 to continue the upside party. Bears need to push the SPX under 1897 to increase the selling pressure. Weaker retail and utility stocks will also help bears.

For the SPX starting at 1927, the bears need any smidge of negativity and the downside will accelerate. Watch the overnight S&P futures. The bulls need to retrace today's down move to 1949 to regain their mojo. This is a difficult task so bulls will focus on boosting financial stocks. A move through SPX 1928-1948 is sideways action for Thursday. The bulls remain comfortably in control.

10/26/14; 7:00 PM EST =
10/22/14; 12:21 PM EST = -7; signal line is -22
10/22/14; 11:27 AM EST = +9; signal line is -22
10/21/14; 9:36 AM EST = -7; signal line is -23

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