Keybot the Quant remains short as the Federal Reserve drama plays out today. Retail stocks take the pipe but recover. Ditto volatility. The algo number is only one measly point below the signal line so the bears need more than that to prove they got game.
Retail stocks, banks and volatility are steering the stock market ship. Utilities remain important but the bull/bear line in the sand is at UTIL 1067 with price up at 1091. If the stock market begins falling apart, it will typically be a run of the mill pullback of a few percent, however, if UTIL, or DJU, fall below 1067, it means serious carnage for stocks is ahead.
But back to the three main players currently. The bull/bear lines in the sand are XRT 87.19, XLF 53.99 and VIX 16.99. Retail stocks and volatility are creating bullishness in stocks while the banksters are creating negativity. The big banks, insurers and financials are sh*tting the bed, but no one wants to talk about it. Probably because analysts have been saying buy, buy, buy, but if you did, did, did, at Thanksgiving or later, you lost, lost, lost, money.
If bears want to create downside drama, they need XRT below 87.19 and it is only pennies away. Then the bears need the VIX above 16.99 to create strong selling. The stock market will be soggy and falling apart if both of these turn negative. If UTIL then loses 1067, the stock market may go into a crash profile or at the least drop significantly (many percent).
All the bulls have to do is pump the banks, XLF, above 53.99 and they are back in biz. If XLF turns bullish, consider the turn to the long side imminent, and if the SPX moves above 7002 trending higher, Keybot the Quant will likely flip long.
Bulls are rooting for stronger banks. Bears are rooting for weaker retail stocks and higher volatility.
The all-time high for the SPX is today, 1/28/26, at 7002.28. The all-time closing high is yesterday, 1/27/26, at 6978.60. Happy Days.
2/1/26;
7:00 PM EST EOM =
1/28/26;
2:54 PM EST = +22; signal line
is +23
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