Thursday, November 1, 2018


Keybot the Quant remains short idling along this week without printing any numbers except for two of the three pre-scheduled numbers. The remaining pre-scheduled number prints in the morning. The bears remain in control with the algo number 28 points below the signal line.

The bears will create market carnage if utilities fail. UTIL is at 729 above this week's critical bull-bear line in the sand at 718.20 so utes do not contribute to stock market weakness. For each day next week, UTIL 721.60 is the key bull-bear line in the sand. Thus, at 4 PM tomorrow, watch how UTIL ends the week. If UTIL finishes below 721.60, that tells you that stocks will be weak come Monday morning. If UTIL finishes the week above 721.60, the bulls will keep fighting to send equities higher.

The bulls need a higher SPX Index, higher copper and higher chips. These three will levitate stocks. The SPX is at 2740. The bull-bear line in the sand is SPX 2751 (this number moves higher to 2751 from the 2740 mentioned in the previous message). This is a big-time number perhaps the most important in all the market. SPX 2751 dictates whether the stock market is in a cyclical bull or bear going forward. For now, stocks remain in a cyclical bear market for the weeks and months ahead. Bulls will also receive upside help if CPER moves above 17.38 and/or if SOX regains 1286.

The US Monthly Jobs Report hits in the morning so the markets will be a circus. Simply pay attention to SPX 2751. Bulls win big above but bears continue to rule the markets below.

11/4/18; 7:00 PM EST =
11/2/18; 9:00 AM EST =
10/31/18; 7:00 PM EST EOM = -20; signal line is +8
10/30/18; 10:00 AM EST = -20; signal line is +9
10/28/18; 7:00 PM EST = -20; signal line is +10

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