Sunday, January 8, 2017


Keybot the Quant begins the first full week of trading in 2017 on the long side. Utilities and retail stocks are dictating the broad stock market direction currently. Bulls need UTIL above 661.56 and the Dow is on its way to 20K. If UTIL moves above 668.13, stocks will explode higher in a buying frenzy.

Bears need to push UTIL under 661.56 and stocks will begin selling off. Bears need RTH under 76.48, however, if they want to do serious downside damage. Keybot likely wants to see both UTIL under 661.56 and RTH 76.48 to flip back to the short side.

If UTIL continues to jog above and below the 661.56 level as the Monday session proceeds, that may hint that the bears are setting things up to flip the model short in the near future. If UTIL runs above 661.56 and is moving higher to 663, 665, and so forth, the bulls will be celebrating Dow 20K and the talk will increase about SPX 2300. It is extremely important for the market bears to keep UTIL under 661.56 and moving lower; the pivot up or down of this key parameter will influence stock market direction for weeks and months ahead.

For the SPX starting at 2277, the bulls need to push above 2282, five points higher, and a strong upside acceleration will occur towards 2290. The bears need to push below 2264, about 13 points lower, to accelerate the downside which will seek the 2250's quickly. A move through 2265-2281 is sideways action to begin the week. Keybot prints one pre-scheduled number this week on Friday morning, Friday the 13th. Watch UTIL 661.56 after Monday's opening bell.

1/15/17; 7:00 PM EST =
1/13/17; 10:00 AM EST =
1/8/17; 7:00 PM EST = +84; signal line is +68
1/6/17; 2:14 PM EST = +84; signal line is +68

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