Keybot the Quant remains short with the algo number 10 points below the signal line. The bulls had the stock market on a silver platter yesterday but they did not want it. The one thing they did not want to see was a gap up open but that is what occurred. Typically, a gap up move results in stocks pulling back. Conversely, a gap down move at the open typically leads to a recover rally. The SPX jumped higher on Monday but in quick order it fell on its sword.
Overnight, the KOSPI (South Korea) crashes -10% opening the door to a tech rout. The tech selloff cascades around the globe and US stocks are soggy today.
Interestingly, utilities have not failed at the 1116-1117 line in the sand. Price rallies to 1139. Doctor Copper collapsed creating the weakness in stocks. CPER 37.96 is the line in the sand and price at 37.52 creates negativity in the stock market. Bulls desperately need copper to recover.
The VIX pops on today's sell off to 19.54 but the line in the sand is VIX 20.69. Bears will not create carnage unless they push the VIX above 20.69. That is when the blood will flow on Wall and Broad.
Bears need VIX above 20.69, UTIL below 1117 and weaker retail stocks and banks. This scenario will create pain and misery.
Bulls need CPER above 37.96 to save the day and make the bears look like chumps. Copper and volatility are key with utilities in the mix as well. The bulls are trying to keep utes elevated because that will enable them to experience a run of the mill pullback with stocks instead of a drastic and horrific crash. If UTIL loses 1117, there will be Hell to pay.
6/28/26;
7:00 PM EST =
6/26/26;
10:00 AM EST =
6/23/26;
9:36 AM EST = 23; signal line is +33
6/21/26;
7:00 PM EST = 39; signal line is +33 but algorithm remains short
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