Monday, December 15, 2014

STOCK MARKET BEARISH -- SHORT

Keybot the Quant remains short as the algo is off to an active start for Monday printing five numbers. The fight is currently over the financial sector which is impacting market direction more than any other variable. Note that XLF ends at 23.92 the exact number the algorithm called out yesterday for today. It is amazing how Keybot can identify these numbers before they occur. David Copperfield shakes his head in wonder and disbelief.

For Tuesday, watch XLF 23.95 as the bull-bear line in the sand. The XLF is in bear territory causing broad market selling by only three pennies. If the XLF moves above 23.95 after the opening bell tomorrow, stocks will rally. If XLF remains under 23.95 and moves lower, stocks will continue the downside collapse. If the bears win with weaker financials, watch semi's, SOX 657, since bears will gather even more fuel if this level fails. If the bulls win with XLF, markets will be floating higher so watch VIX 14.85 which signals the all-clear for bulls. If the VIX remains above 14.85, stocks will remains weak indefinitely moving forward.

For the SPX starting at 1990, the bulls need to touch the 2019 handle and bingo, the upside will accelerate well into the 2020's. The bears need to push under 1982 and stocks will immediately collapse to 1978 and then 1973. A move through 1983-2018 is sideways action. The bears are driving the bus. Listen and watch for any news concerning banks overnight good or bad. Bulls need stronger financials tomorrow or they are in for more pain. Stronger copper will also help the bulls recover. Keybot prints a pre-scheduled number tomorrow morning before the opening bell.

12/21/14; 7:00 PM EST =
12/16/14; 9:00 AM EST =
12/15/14; 3:58 PM EST = +16; signal line is +42
12/15/14; 2:29 PM EST = +32; signal line is +43
12/15/14; 2:17 PM EST = +16; signal line is +44
12/15/14; 12:41 PM EST = +32; signal line is +47
12/15/14; 11:27 AM EST = +16; signal line is +48
12/14/14; 7:00 PM EST = +32; signal line is +49

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