Friday, November 16, 2018


Keybot the Quant remains short with the algo number 32 points below the signal line. The bears are cruising. Keybot prints five numbers in the Wednesday session but no numbers in the Thursday session.

Utilities fail ushering in more broad stock market weakness. UTIL 728.81 is key this week and price is at 715 creating negativity. For next week, UTIL 723.51 is key replacing the 728.81 so it is an easier bar for the bulls to cross above and create stock market strength. At 4 PM EST today, at the closing bell, when the week ends, note the UTIL price in relation to 723.51 since it will provide information on how the stock market will trade on Monday.

UTIL 707.32 is extremely important. If UTIL loses 707.32, there will be epic stock market carnage ahead. A flash crash of the US stock market will be on the table and at the least, the S&P 500 would be expected to dump about 30 handles in quick order. Stocks will likely drop into free fall. The bulls must hold the UTIL 707.32 support. If the bulls fail, they are toast and investors will be shocked at how fast the stock market collapses. Interestingly, UTIL fell to 710.11 yesterday only 3 points from creating Armageddon, and very few realize the extreme danger.

The bulls need stronger copper, utilities, banks and for the SPX index to get back above 2749, to create stock market upside. Bulls will create a rally for the stock market if CPER moves above 17.32, UTIL above 729, XLF above 26.98 and/or SPX above 2749. Any 1 of the 4 parameters turning bullish will immediately halt the downward slide in the stock market. Any 2 of the 4 parameters turning bullish will create a strong relief rally and set Keybot up for potentially going long. Copper futures are rallying overnight into Friday morning as this message is typed about 6 hours before the opening bell for the US regular trading session.

UTIL 728.81 (723.51 for next week), UTIL 707.32, CPER 17.32 and XLF 26.98 tell the stock market directional story today. Copper futures are up +0.5% so CPER should turn bullish at the opening bell (if the copper rally holds) providing hope for the bulls. Remember, if UTIL 707.32 fails, and the other parameters remain bearish, stock market Armageddon is about to occur.

11/18/18; 7:00 PM EST =
11/14/18; 11:05 AM EST = -36; signal line is -4
11/14/18; 10:57 AM EST = -20; signal line is -3
11/14/18; 10:35 AM EST = -36; signal line is -3
11/14/18; 10:04 AM EST = -20; signal line is -2
11/14/18; 9:36 AM EST = -36; signal line is -2
11/13/18; 1:54 PM EST = -20; signal line is -1

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