Keybot the Quant is on the long side going into the Friday session. Utilities are key. UTIL begins at 665. Market bulls need UTIL above 666 and the stock market will continue printing more record highs. The bears need to send UTIL under 662 to create downside action in the stock market, however, that party may not continue long since as of 4 PM EST when the closing bell rings for the week, the UTIL 662 number becomes meaningless and is replaced with 653.27 which is important for all of next week.
Thus, if UTIL ventures down towards 662, stocks will be selling off but this action will only cause negativity if UTIL keeps dropping like a rock on Friday towards the 653 number. Utes move lower when yields and rates move higher. This is because utility companies are always involved in very large and expensive projects and they are very exposed to interest rate changes. So for UTIL to drop, Treasury yields would have to be rising (bonds selling off).
Bears can benefit from RTH under 76.53, GTX under 2354 and/or XLF under 23.10 but retail stocks, commodities and financials all appear strong. Watch UTIL 666 there will be likely lots of drama around this level over the coming days.
For Friday with the SPX starting at 2307, the bulls will run strongly higher if they push above 2311. If UTIL is above 666 and SPX above 2311, stocks will run strongly higher. The bears need to push the SPX under 2297 to regain their mojo. A move through 2298-2310 is sideways action to end the week. Keybot prints a pre-scheduled number at 10 AM. Bulls are in control as markets continue chopping along.
2/12/17;
7:00 PM EST =
2/10/17;
10:00 AM EST =
2/9/17; 11:31 AM EST
= +84 signal line is +71
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