Tuesday, June 26, 2018

STOCK MARKET BEARISH -- SHORT -- CAUTION


Keybot the Quant remains short and prints two numbers in the Tuesday session. The algo number is 13 points below the signal line so caution is warranted. Bears need higher volatility and lower commodities. Bulls need higher utilities and semiconductors.

UTIL came up to kiss the 712.65 called out by Keybot ahead of time but could not overtake this level making for happy bears. It is astounding and amazing that the algorithm can call out the most important parameters and the price levels before they occur. If you are not impressed, you should be. Keybot is an amazing model.

In addition, late in the Tuesday session, stocks fell with volatility rising. The VIX came up within a couple pennies of the key 16.19 level (that Keybot called out ahead of time) before retreating unable to overtake this important level making for happy bulls.

In a nutshell, the bears need VIX above 16.19 pronto to guarantee further market selling. GTX falling under 2695 will also create stock market weakness.

The bulls need UTIL above 712.65 and/or SOX above 1364 to prove that the upside rally has legs. If one of the two parameters turn bullish, consider the imminent turn to be in play, and Keybot will likely flip long if the SPX also moves above 2733. Volatility and utilities will tell the market story for hump day.

7/1/18; 7:00 PM EST EOM EOQ2 EOH1 =
6/29/18; 10:00 AM EST =
6/26/18; 11:42 AM EST = +22; signal line is +35
6/26/18; 10:00 AM EST = +8; signal line is +37

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