Sunday, October 28, 2018


Keybot the Quant remains short as the bears continue biting off chunks of bull flesh. The algo did not print any numbers at the tail end of last week except for the pre-scheduled number on Friday. The algorithm number is 30 points below the signal line so the bears are cruising along slapping the bulls around like rag dolls.

Bears need weaker utilities to increase the market mayhem. UTIL begins the week at 730. If 718.20 fails, the stock market is in serious trouble and a sharp deterioration will be occurring. If 709.44 is lost, the stock market will likely go into free fall and a crash scenario is on the table.

Bulls need stronger commodities and copper and for the SPX price to recover. Bulls need GTX above 2767 and CPER above 17.40. GTX ran higher to the 2765-2767 resistance on Friday but then balked at poking above. It is amazing that the Keybot algorithm can identify these levels before they occur.

As long as the SPX remains below 2740, the stock market is in deep trouble and in a cyclical bear market pattern. If the stock market rallies, the upside will not continue unless the SPX can move above 2740. Keybot prints three pre-scheduled numbers this week; one on Tuesday, the second on Wednesday and the third on Friday. Wednesday is the last day of October, EOM, and Halloween. Will the new week of trading be a trick or a treat? Utilities, commodities and copper will tell you the answer.

11/2/18; 9:00 AM EST =
10/31/18; 7:00 PM EST EOM =
10/30/18; 10:00 AM EST =
10/28/18; 7:00 PM EST = -20; signal line is +10
10/26/18; 10:00 AM EST = -20; signal line is +11
10/23/18; 3:52 PM EST = -20; signal line is +12

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