Wednesday, January 4, 2023

STOCK MARKET BULLISH -- LONG

Keybot the Quant remains long as chips remain in the bear camp and copper and utes in the bull camp.

The bulls are cruising with the algo number 35 points above the signal line. Bulls need SOX above 2597 (now at 2547) to create a wild upside orgy of stock buying.

Bears need to pull CPER below 22.57 and/or UTIL below 978.52 to stop the upside rally and introduce market negativity. The three parameters are at a Mexican standoff this afternoon so tomorrow will tell the tale of which one flinches.

CPER begins at 22.66 so if you are watching the copper futures overnight, the bears need a -0.4% drop in copper and that will be enough for the stock market to be flat or negative tomorrow. Of course, copper down a lesser amount, or if it is positive overnight, will indicate that the bulls are going to pump stocks higher.

UTIL begins tomorrow at 980 so things can fall apart quickly if the bulls do not show up with their A game. It is an extremely big deal that UTIL is above 978.52 and 975.90. Watch these numbers like a hawk since they tell you how weak or strong the stock market is going forward. If UTIL remains above 975.90 into the weekend, it foretells good things for the stock market next week (bullish).

So that is the battle. You do not have to watch any of the indexes. Simply watch chips, copper and utes and that will tell you the direction of the US stock market going forward.

1/8/23; 7:00 PM EST =
1/6/23; 9:00 AM EST =
1/4/23; 10:49 AM EST = +16; signal line is -19

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