Monday, January 14, 2019

STOCK MARKET BULLISH -- LONG -- CAUTION -- TURN MAY BE IMMINENT

Keybot the Quant remains long with volatility remaining in bull territory. Utilities are punched in the face after PCG crashes. The crash in utes opens the door to ugly things for the stock market going forward.

The bears need higher volatility and/or lower retail stocks and chips if they want to spank the stock market lower. Bears need VIX above 19.39, RTH below 97.65 and/or SOX below 1188. Each one of these parameters will knock the stock market a leg lower. There are shenanigans going on in markets because the retail sector and chips both came down to those targets today and bounced.

The bulls need stronger banks and as fate would have it there are bank earnings on tap in the morning and the banksters are kicking off the Q4 2018 earnings season this week. C reported this morning and was goosed +4% higher. Bulls need XLF above 24.81 to signal the all-clear for the stock market. Equities will take a strong leg higher if the banks turn bullish.

Volatility remains the key. As the VIX goes, so goes the market inversely. If either VIX, RTH or SOX turns bearish, any one will do, and the SPX drops below 2570, Keybot will likely flip short.

1/17/19; 9:00 AM EST =
1/14/19; 11:39 AM EST = -6; signal line is -18
1/14/19; 10:22 AM EST = -20; signal line is -19 but algorithm remains long

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