Monday, June 27, 2016


Keybot the Quant is on the short side as stocks fall down the rabbit hole today. Keybot prints two numbers to begin the week. The algo number is 41 points under the signal line. With the high volatility, the stock market will be expected to move wildly up and down intraday and day to day with large point swings. Monday was interesting. Copper did not break down. Instead an NYA target number ruptured, then the SPX 2027 level gave way. The trap door opened and sent price sub 2K.

The bears need to push copper and/or commodities lower to create more broad market selling so a higher dollar would  be bear friendly and a lower dollar bull friendly. Bears need either JJC under 24.11 or GTX under 2300 to create another down leg for stocks. The bulls need to stop the bleeding and can only confirm an upside rally with SPX above 2027 and/or NYA above 10109.

For the SPX starting at 2001, the bears need to push under 1992 to accelerate the downside. The bulls need to touch the 2035 handle to create an upside acceleration, a formidable task, so instead bulls will focus on keeping copper and commodities green while sending the SPX and NYA indexes higher. The bears have the ball. S&P futures are +12 on Monday evening.

7/3/16; 7:00 PM EST =
6/30/16; 7:00 PM EST EOM =
6/28/16; 10:00 AM EST =
6/27/16; 9:37 AM EST = +5; signal line is +46
6/27/16; 9:36 AM EST = +19; signal line is +49
6/26/16; 7:00 PM EST = +33; signal line is +51

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