Friday, June 30, 2017


Keybot the Quant remains short. The market drama continues. Semiconductors break down which are the major negative influence on stock market direction. The bulls tried to pump stocks higher mid-week by goosing the chips but that rolled back over to the downside.

To end the day, week, month, quarter and first half of the year, it is a battle between chips and volatility. Market bulls need SOX above 1058.42. Bulls must have stronger chips to send the broad stock market higher. Market bears need VIX above 11.59 to begin a more serious selling event. If the VIX remains below 11.59, the bulls are fine and will eventually recover.

The SOX is at 1038 and VIX is at 11.40 at 11 AM EST. If the semi's remains bearish and volatility bullish, stocks will stagger along sideways with a slight downward bias.

The algorithm is beginning to identify utilities as a key parameter impacting stock market direction going forward. For all of next week, the UTIL 705.95 is key; cal lit 706. UTIL is printing at 709 and printed down to 705 yesterday. The UTIL 705.95 bull-bear line in the sand is important all of next week so check the final print for this week at 4 PM EST today. If UTIL prints under 706 today, that tells you the stock market will be weak on Monday. If UTIL ends the week above 706, utes will be a non-issue concerning broad stock market direction come Monday.

Watch SOX 1058.42 and VIX 11.59; these two numbers tell you the broad stock market direction currently. The beat goes on.

7/2/17; 7:00 PM EST EOM EOQ2 EOH1 =
6/30/17; 10:00 AM EST = +54; signal line is +62
6/29/17; 3:43 PM EST = +54; signal line is +63
6/29/17; 12:00 PM EST = +40; signal line is +64
6/29/17; 9:47 AM EST = +54; signal line is +65
6/28/17; 10:42 AM EST = +70; signal line is +66 but algorithm remains short
6/27/17; 3:02 PM EST = +54; signal line is +66

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