Keybot the Quant remains short and the algo prints five numbers today. The directional move on Wednesday will depend on financials and semiconductors; XLF 23.95 and SOX 657, respectively. XLF is at 23.69 creating market negativity. SOX is 661 creating market poistivity. Bears need SOX under 661 to unleash carnage. Bulls need XLF above 23.95 to create a relief rally, like today, only today's rally fizzled once XLF failed back under 23.95. If stocks sell off on Wednesday morning, but the SOX remains above 657, bears got nothing and stocks will recover.
For the SPX starting at 1973, the bears only need a smidge of red in the overnight S&P futures and stocks will accelerate lower after the opening bell. The bulls need to push the SPX above 2017 to regain their mojo, a formidable task. Instead, bulls will focus on keeping semiconductors bullish while pushing the banks higher with all their might. A move through the wide SPX 1974-2016 range is sideways action for Wednesday. The bears are driving the bus. Watch XLF 23.95 and SOX 657 to gauge broad market direction.
12/21/14;
7:00 PM EST =
12/16/14; 2:56 PM EST
= +16; signal line is +36
12/16/14; 1:55 PM EST
= +32; signal line is +37
12/16/14; 1:17 PM EST
= +16; signal line is +38
12/16/14;
11:18 AM EST = +32; signal line is +39
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