Keybot the Quant remains on the bear side as this trading week motors along without Keybot printing any numbers as yet. Stocks keep floating higher. SOX remains in the bear camp and VIX in the bull camp. Neither parameter has flinched to reveal the path ahead for the stock market.
The battle for Wednesday has expanded. Keybot is tracking four key parameters most impacting stock market direction ahead; chips, copper, volatility and utilities. The bulls need either SOX above 1252.80 and/or JJC above 34.80. If either parameter turns bullish, and the SPX moves above 2670, Keybot will likely flip long, hence the imminent turn notation in the title line.
The bears need either VIX above 10.76 and/or UTIL below 740.95. Utilities fell during the Tuesday session with UTIL at 748.31. This is extremely important. Next week the key UTIL level will be 746.94, call it 747. As of Friday at 4 PM EST and all next week, if UTIL falls under 747, stocks will begin dropping in earnest. Bulls must send utes higher immediately or they will be in trouble moving into next week. In addition, keep an eye on commodities since GTX under 2377 will create stock market downside.
To boil this down into something simpler, Keybot will likely flip long if SOX moves above 1252-1253 and the SPX moves above 2670. The algorithm will remain short and begin sending stocks lower if the VIX pops above 10.76. VIX futures begin trading at 3 AM EST. Copper futures will also be trading overnight to provide a heads up on how JJC will move on hump day.
Wednesday is a huge day for markets with the FOMC rate decision, forecasts and Chair Yellen's final press conference. One of the parameters above will flinch tomorrow. Keybot does not print any pre-scheduled numbers this week so the market action dictates the way this drama plays out.
12/17/17;
7:00 PM EST =
12/10/17; 7:00 PM EST =
+68; signal line is +70
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