Sunday, May 26, 2019


Keybot the Quant is on the short side for the start of the four-day holiday-shortened trading week ahead. US markets reopen on Tuesday morning.

The bears need NYA below 12484 (now at 12581) to create stock market carnage.

The bulls need stronger banks and commodities and lower volatility to stop the stock market malaise. Bulls need XLF above 26.97 (now at 26.86), GTX above 2542 (now at 2504) and VIX below 14.80 (now at 15.85), respectively. Any one of the three will immediately halt the stock market selling and require the caution flag in the title line. If 2 of the 3 flip to the bull camp, consider the imminent turn to the bull side to be in play; Keybot will be in position to go long. If all 3 flip bullish, the stock market will be catapulting higher on its way to new records.

For now, the bears rule the stock market. Keybot prints a pre-scheduled number on Tuesday morning shortly after trading begins for the shortened week and another number on Friday morning. The EOM occurs on Friday so May's trading ends and June's trading begins on Monday, 6/3/19. The monthly charts will have a new data point cast in concrete on Friday at 4 PM EST. The S&P 500 began the month of May at 2946 and is now at 2864.

The NYA index and banks will tell the story on Tuesday morning. Bears win bigtime if NYA drops below 12484. Bulls win bigtime if XLF moves above 26.97.

6/2/19; 7:00 PM EST EOM =
5/31/19; 10:00 AM EST =
5/28/19; 10:00 AM EST =
5/26/19; 7:00 PM EST = +8; signal line is +31
5/23/19; 3:24 PM EST = +8; signal line is +32

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