Tuesday, January 10, 2017


Keybot the Quant remains long. The algo prints one number in the Monday trade. UTIL failed the 661.56 level so the bears painted a red tape. The bulls remain in control but the algo number is only 1 measly point above the signal line. In other words, flip a coin for the markets. Bulls and bears are fighting it out and the pricing action is erratic and unstable.

Bulls need UTIL above 661.56 to signal upside fun ahead and Dow 20K. The bears need either RTH under 76.48, JJC under 28.57 and/or GTX under 2325 (retail stocks, copper and commodity stocks, respectively). Copper is trading higher overnight. If RTH drops under 76.48, and the SPX is trading under 2269 and dropping, Keybot will likely flip to the short side.

Bulls win with UTIL above 661.56. Bears win with RTH under 76.48. If utes remain bearish and retail stocks remain bullish, the stock market will stagger along sideways with a slight upward bias.

For the SPX starting at 2269 on Tuesday, the bears need any smidge of red in the futures and the downside will accelerate several handles. S&P futures are printing a hair to the red side five hours before the opening bell. The bulls need to push above 2275 to regain their mojo. A move through 2270-2274 is sideways action for Tuesday but since it is such a tight range a winner and loser will be chosen. UTIL 661.56 and RTH 76.48 are key.

1/15/17; 7:00 PM EST =
1/13/17; 10:00 AM EST =
1/9/17; 9:41 AM EST = +68; signal line is +67
1/8/17; 7:00 PM EST = +84; signal line is +68

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