Sunday, August 28, 2016


Keybot the Quant is on the short side as of last Friday. Markets remain erratic and unstable so a whipsaw back to the long side may occur. Retail stocks are the key focus to begin the week. If RTH remains below 79.53 (now at 79.46) stocks will continue drifting lower. Market bulls need RTH above 79.53 which will signal that market selling is over and stocks will move higher. Keybot probably wants to see RTH above 79.53 and SPX above 2188 to whipsaw back to the long side.

For the bears to gain further downside traction, VIX needs to move above 14.47 (now at 13.65) and GTX needs to move below 2271 (now at 2288). So retail, volatility and commodities are the three parameters currently most influencing market direction.

For the SPX starting at 2169, the bulls need to push above 2188 to accelerate the upside. The bears need to push under 2160 to accelerate the downside. A move through 2161-2187 is sideways action to begin the week.

Keybot prints three pre-scheduled numbers this week. The month ends on Wednesday. The SPX began August at 2173.60 so there may be a fight at this level heading into mid-week. The US Monthly Jobs Report is Friday. The Labor Day holiday is Monday, 9/5/16, so stocks may be buoyant at the tail end of this week into the three-day holiday weekend.

9/4/16; 7:00 PM EST =
9/2/16; 9:00 AM EST =
8/31/16; 7:00 PM EST EOM =
8/30/16; 10:00 AM EST =
8/28/16; 7:00 PM EST = +62; signal line is +76
8/26/16; 3:20 PM EST = +62; signal line is +77

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