Keybot the Quant remains short. The algo number is 10 points below the signal line which is not a ringing endorsement of bear strength. Semiconductors are single-handedly holding up and supporting the stock market and the chips rallied yesterday.
Both SPX and CPER came up to test their critical levels setting up a showdown over the next couple days as the Federal Reserve speaks. Stock market control is dictated by the SPX and copper versus chips.
Bears need SOX below 2970 if they want to create carnage. This represents about a -4.7% drop in chips so the bears have their work cut out for them.
Bulls need SPX above 3959.25 (now at 3952) and/or CPER above 24.29 (now at 24.17). Either parameter flipping long will likely flip Keybot the Quant long hence the imminent turn notation remains in the title line. S&P futures are up +15. Bingo. The bulls plan to push higher. Copper futures are up +0.4% and +0.5% will create bullish joy so the pre-market and futures are set up for the bulls.
Stocks are typically positive 80% of the time leading into the Fed decisions so perhaps that accounts for some of the buoyancy in S&P futures. Traders and investors will likely want to wait for Pope Powell to bring the tablets down from On High on hump day and tell everyone how to trade the corrupt market.
The set-up favors bulls and the model may flip long out of the gate today. The opening bell is still 5 hours away. A slow steady up move will empower the bulls but jumpy choppy action may simply create more of the same malaise. Keybot only sees the 1's and 0's so it will be interesting to see how it plays out today.
3/26/23;
7:00 PM EST =
3/19/23;
7:00 PM EST = -61; signal line is -51
3/17/23;
10:00 AM EST = -61; signal line is -49
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