Keybot the Quant remains long as the bulls and bears fight over the banks. The bull/bear line in the sand is XLF 33.02 (remember, these numbers are changing every second) with price at 33.06. The stock market story will be told when stocks open for trading. As the banks go, so so goes the market.
Bulls need XLF to remain above 33.02 and start moving a lot higher to save the day and keep the rally going. The corrupt Wall Street gang stick-saved the banks in the final minutes of trading yesterday preventing the failure. In the zeal to prevent the collapse, a flash spike occurs in XLF at 3:57 PM EST from 33.06 to 33.25 in seconds, then back down. Sweep that under the exchange's rug. The crony capitalists did not want banks to fail yesterday. They needed to buy time to figure things out overnight.
Bulls will also be helped by higher commodities, copper and utilities. GTX is stalled and could not help the bulls in the commodity sector yesterday.
UTIL is key at 1014 because, for all of next week, UTIL 999.90 is a bull/bear line in the sand. Thus, if UTIL finishes the week, at 4:00 PM EST Friday, above 999.90, the US stock market will rally to begin next week. If UTIL drops below 999.90 this week and finishes that way, the US stock market is going to be soggy next week. Of course, XLF is the rudder steering the US stock market ship right now.
Bears simply need to push XLF under 33.02 and they will win going forward. It is on a silver platter. If XLF fails consider the imminent turn to be in play and if the SPX trades below 4080 trending lower (starting at 4091), Keybot the Quant will likely flip short.
About 2 hours before US trading begins for the regular session for hump day, XLF is up +0.5% to 33.24. Bulls win. Corrupt humans. It makes you laugh. They figured it out overnight. S&P futures +20. VIX 23.42.
8/7/22; 7:00 PM EST =
8/5/22;
9:00 AM EST =
7/31/22;
7:00 PM EST EOM = +9; signal line is -5
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