Keybot the Quant remains short. The bears slaughtered the bulls yesterday the SPX puking 72 points. The bed-sh*tting sends the algo number 67 points below the signal line. The bears are cruising.
Two key market metrics failed yesterday and will tell you if the downside has legs. XLF drops below the 34.21 bull/bear line in the sand ending the day at 33.92. Bulls desperately need the banks to recover back above XLF 34.21.
The NYA fails below the 15622 bull/bear line in the sand down to 15602. This failure is especially ominous because it represents a cyclical bear market ahead. Write NYA 15622 on a sticky note and paste it to your forehead for the days ahead. There will likely be a battle here during the days ahead and the resolution will dictate how stocks end the year.
If NYA remains below 15622 going forward, the US stock market will crumble lower into year end. If the NYA recovers above 15622, the stock market will stabilize and the selling will stop. Also, the bloodbath scenario ahead for stocks can be taken off the table.
NYA 15622 and XLF 34.21 will tell you the stock market story today. XLF is trading at 34.00 in the pre-market. For the bears to gain further traction to the downside, they need weaker commodities.
9/24/23;
7:00 PM EST =
9/21/23;
3:55 PM EST = -49; signal line is +18
9/21/23;
10:49 AM EST = -35; signal line is +20
9/21/23;
9:53 AM EST = -19; signal line is +22
9/21/23;
9:42 AM EST = -35; signal line is +24
9/20/23;
3:59 PM EST = -19; signal line is +27
9/19/23;
9:00 AM EST = -5; signal line is +28
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