Sunday, July 26, 2020


Keybot the Quant remains short. The bears are in control of the stock market with the algo number 20 points below the signal line. The historic market action continues. Bulls need stronger utilities and NYA index while bears need weaker utes and commodities.

The bull-bear lines in the sand for this week for utilities are UTIL 823.98, call it 824, and 835.53. UTIL begins the week at 825.74, call it 826. The bulls will be immediately helped at the opening bell Monday morning with UTIL above 824, that is if it remains that way. If futures are lower overnight, utes may instead drop at the open. Bulls need to drive UTIL higher up through 835.53 which will stop the stock market selling and stabilize equities. The bulls need NYA above 12470 (NYA begins only 8 points in the bear camp at 12462) which will immediately stabilize the stock market and clearly signal that stocks are headed higher again.

If the bulls can push UTIL above 835.53 and NYA above 12470, both are likely needed, Keybot may whipsaw back to the long side. If one of the two turns bullish consider the imminent turn to the long side to be in play for the quant.

The bears need to push UTIL below 824 out of the gate which will create stock market negativity. Bears must keep NYA bearish below 12470. Every hour that NYA remains bearish is another nail in the bull coffin. At the same time, bears need weaker commodities and to push GTX below 1688 (now at 1724).

The main Monday morning battleground is the utilities and NYA index. These two parameters tell you everything about stock market direction to begin the week. Keybot prints two prescheduled numbers this week one on Tuesday morning and the other on Friday morning. Friday is EOM and August trading begins Monday, 8/3/20. Stay alert. The stock market is in a precarious position right now and few realize it.

8/2/20; 7:00 PM EST EOM =
7/31/20; 10:00 AM EST =
7/28/20; 10:00 AM EST =
7/26/20; 7:00 PM EST = +26; signal line is +46
7/24/20; 12:54 PM EST = +26; signal line is +47

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