Keybot the Quant remains on the long side with the robot teasing to go short but content to stay long into the holiday-shortened trading week ahead. The bulls are in control with the algo number 8 points above the signal line but that is nothing to brag about.
The battle next week is between copper, volatility and NYA in the bull camp versus utes and commodes in the bear camp.
To continue the rally, bulls need UTIL above 974 and/or GTX above 3630 although both will take some effort. If the bulls push stocks higher in front of the joyous Turkey Day, watch SPX 4145-4150 since that would unleash big upside.
If UTIL does not get back above 974, prepare your portfolio for a major crash event that can begin at anytime and will likely be written into the record books. UTIL above 974 would keep the wolf at bay.
Bears need to pull CPER below 21.69, NYA below 15263 and/or push VIX above 25.30. Any 1 of the 3 will signal an end to the bull rally. If 2 or all 3 turn bearish, Katy bar the door, since stocks will be collapsing lower. The copper target corresponds to a -1.2% loss in copper futures so watch this closely overnight Sunday into Monday.
If any 1 of the 3 parameters turn bearish, consider the imminent turn to the short side to be back on the table and if the SPX loses 3936 trending lower, Keybot the Quant will likely flip short.
The NYA below 15263 is a big deal which will lead to significant further stock market weakness. Conversely, if NYA remains above 15263, the bulls are on easy street with stocks floating higher until the NYA changes its mind again.
Keybot the Quant prints one prescheduled number next week on Wednesday morning. The US stock market is closed on Thursday for Thanksgiving Day. Friday is a shortened session.
11/27/22;
7:00 PM EST =
11/23/22;
10:00 AM EST =
11/20/22; 7:00 PM EST =
11/18/22; 3:06 PM EST =
+26; signal line is +18
11/18/22; 12:13 PM EST
= +12; signal line is +16 but algorithm remains long
11/18/22; 9:36 AM EST =
+26; signal line is +16
11/17/22; 9:36 AM EST =
+12; signal line is +16 but algorithm remains long
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