Wednesday, June 29, 2016


Keybot the Quant is on the long side as of this morning after the opening bell. Bulls need XLF, financials, above 22.75 to guarantee another leg higher in the stock market. The bank stress tests were positive and XLF is up +1% to....... wait for it...... 22.73 in afterhours trading. Looks like a big fight at XLF 22.75 is on tap tomorrow. Bulls will also receive upside juice if VIX, volatility, moves below 16.17.

For the bears, SOX, the chips, must fall under 676.50 and the bears will be in immediate control of the stock market again. Bears will also benefit if RTH, retail stocks, drop under 75.96.

For the SPX starting at 2071, the bulls need two points higher, to push above 2073 and bingo, the upside wall accelerate to 2080. The bears need to push under 2043 to regain control, a formidable task, so instead bears will focus on moving banks, semiconductors and retail stocks lower and volatility higher. A move through SPX 2044-2072 is sideways action.

Tomorrow is EOM, EOQ1 and EOH1, 6/30/16, and Keybot prints a pre-scheduled number tomorrow night. The bulls are in control. The SPX started June at 2097. Will it be a positive or negative month come 4 PM EST tomorrow?

6/30/16; 7:00 PM EST EOM =
6/29/16; 1:29 PM EST = +68; signal line is +45
6/29/16; 1:11 PM EST = +52; signal line is +44

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