Monday, February 2, 2015

STOCK MARKET BEARISH -- SHORT -- CAUTION -- TURN MAY BE IMMINENT

Keybot the Quant remains short after another wild and volatile day of big price moves. Late in the day the SPX launched higher moving up at a rate of over three points per minute. This is one SPX point every 20 seconds and price moving one nickel per second! The algo idled along all day without printing any numbers to begin the week. For Tuesday, the algo appears most fixated on the NYA Index as the main rudder steering the market ship. Watch the NYA 40-week MA at 10810-ish. If the stock market rally continues and the NYA moves above 10810, Keybot will likely flip back to the long side. If stocks rally but the NYA does not achieve 10810, equities will reverse and begin selling off again.

For the SPX starting at 2021, the bulls only need one positive point., to touch the 2022 handle and bingo, the upside will accelerate. Watch the S&P futures overnight for any positivity. The bears need to push under 1981 to regain their mojo, a formidable task, so instead bears will be preventing the NYA from moving higher as well as financials and semiconductors and at the same time trying to push volatility higher. If a big rally occurs, watch the NYA 10810 level like a hawk.

2/8/15; 7:00 PM EST =
2/6/15; 9:00 AM EST =
2/1/15; 7:00 PM EST EOM = +10; signal line is +24

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