Keybot the Quant remains bearish after a sleepy last week. There may be lots of drama going on but the underlying stock market parameters held completely steady in the bear camp with the algo number 41 points below the signal line. The quant did not print any numbers last week except for the pre-scheduled number on Friday morning.
For the level of negativity in the market as per the quant, it is surprising that stocks have not dropped further. Bulls are clinging on to commodities as their lifeline; it is a sector that has not broken down yet.
The bears will create blood and carnage on Wall Street if the SPX drops below 4177. The S&P 500 begins at 4288 only about a hundo points away. The US stock market will likely crash if the 4177 fails. This is not a joke.
If the bulls want to stop the bears, they need stronger chips and NYA index. Bulls need SOX above 3515 and/or NYA above 15629 to stop the stock market selling. Either one would do. The stock market would then need further positives to stage a legitimate rally, but it would at least stop the bleeding. If both parameters turn bullish a strong relief rally will be underway.
Bulls can stabilize the stock market and start a relief rally with SOX 3515, NYA 15629, and a VIX below 15.
Bears will likely send the US stock market into a crash if SPX 4177 fails. October is the month for crashes. The stock market is exhibiting a crash profile for the last few weeks due to the failure and weakness in the utilities. There may be lots of fun on tap to end the year. The Girls Just Want to Have Fun.
Keybot prints one pre-scheduled number this week on Friday morning before the opening bell. Q3 is in the bag and the first day of trading for Q4 begins tomorrow.
10/8/23;
7:00 PM EST =
10/6/23; 9:00 AM EST =
10/1/23;
7:00 PM EST EOM EOQ3 = -49; signal line is -8
9/29/23;
10:00 AM EST = -49; signal line is -5
9/24/23;
7:00 PM EST = -49; signal line is -2
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