Monday, December 18, 2017

STOCK MARKET BULLISH -- LONG -- CAUTION -- TURN MAY BE IMMINENT

Keybot the Quant remains long. Out of the gate on Monday morning the chips launched higher. The bears never had a chance. The algo prints a maximum +100 number. However, as the Monday session plays out, an interesting development occurs. The utilities fail into a weekly downtrend (as compared to 15 weeks ago). UTIL 746.94 is key as previously mentioned. Note how price fell to that exact level this morning and bounced, then came down to fall through as the day plays out. Isn't it amazing the algorithm can identify that level before it occurs?

So the bulls ram chips higher to create market joy but behind the curtain, the bears drag the utilities into the bear camp. This activity caused the stock market to roll over in the afternoon and finish off the highs. The table is set for Tuesday. As the utilities go, so goes the markets. The stock market will have trouble moving higher if the bears keep UTIL under 746.94.The market bulls simply need to push UTIL above 746.94 and the stock market will catapult higher. 

If the bears push JJC under 35.00 and/or VIX above 10.72, either one would do, and SPX under 2686, Keybot will likely flip short. The algo prints a pre-scheduled number Tuesday morning before the opening bell. Watch the utilities. If utilities begin trending lower on a weekly  business that is an extremely bad omen for the overall stock market in the weeks and months ahead.

12/22/17; 10:00 AM EST =
12/19/17; 9:00 AM EST =
12/18/17; 3:13 PM EST = +84; signal line is +77
12/18/17; 2:16 PM EST = +100; signal line is +76
12/18/17; 1:20 PM EST = +84; signal line is +75
12/18/17; 9:36 AM EST = +100; signal line is +75
12/17/17; 7:00 PM EST = +84; signal line is +74

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