Friday, December 28, 2018


Keybot the Quant remains short as the stock market stages a record-setting comeback rally intraday on Thursday. UTIL moves above the critical 709 level to 711 which creates upside joy for equities. However, the bears remain in control of the stock market with the algo number 18 points below the signal line. Things are getting interesting now. Bulls need stronger utes and copper and the two may be finally cooperating, hence the caution flag is out.

Bulls need CPER above 17.17 to create more upside strength for the stock market. Interestingly, even if copper turns bullish, Keybot may not flip long. If CPER comes up to 17.17, watch its behavior closely. If it oscillates above 17.17 for a while, then back below for a while, then back above, jogging above and below, that tells you the stock market will likely continue higher and begin mounting a strong relief rally higher and Keybot is likely ready to flip to the long side.

Bears need UTIL to fall back below 708.93 because pain and misery will immediately begin for stocks. There are only two trading days remaining in the year; today and Monday. Volume should be light. Continue watching copper and utilities.

12/31/18; 7:00 PM EST EOM EOQ4 EOH2 EOY2018 =
12/30/18; 7:00 PM EST =
12/27/18; 3:59 PM EST = -36; signal line is -18
12/27/18; 10:00 AM EST = -52; signal line is -17
12/24/18; 10:13 AM EST = -52; signal line is -15

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