Keybot the Quant remains short with the algo number 19 points below the signal line. The bears are in charge but there are lots of balls in the air. The negativity in stocks on Friday is because the 'chips are down'. SOX tried to rally in the afternoon but kept petering out. That is why you did not see a late-day rally in stocks into the closing bell.
A new week is ahead so obviously the bulls and bears will pick up where they left off; fighting over semiconductors. SOX 5076 is the bull/bear line in the sand and price is down at 5037 in the bear camp creating stock market negativity. Bulls need SOX above 5076 or they got nothing.
Bulls also need XRT above 79.94 and/or VIX below 17.05. Bulls likely need 2 of the 3 parameters to turn bullish to put the quant in position to flip long.
Bears need to keep the chips and retail stocks weak, while pushing volatility higher, and at the same time attacking utilities and the NYA index. The quant is tracking UTIL 958 and NYA 18830 as important lines in the sand. Both of these levels represent extremely bad outcomes for the stock market. If both fail, it will be Armageddon.
So that is an exciting set-up for the week ahead that prints one pre-scheduled number on Friday morning. Bears are cruising and need UTIL below 958 and/or NYA below 18.8K to send the stock market lower fast. The blood will be flowing on Wall and Broad. The bulls want none of that and instead need to rally semiconductors and retail stocks while pushing the VIX below 17.05 pronto. Who will win? There are Winners and Losers every day in the big city. Life's a gamble, and you might lose.
1/19/25;
7:00 PM EST =
1/17/25;
9:00 AM EST =
1/12/25;
7:00 PM EST = -16; signal line is +3
1/10/25;
10:00 AM EST = -16; signal line is +4
1/10/25;
9:38 AM EST = -16; signal line is +4
1/10/25;
9:00 AM EST = +0; signal line is +3
1/7/25;
11:57 AM EST = +0; signal line is +2
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