Tuesday, January 6, 2015

STOCK MARKET BEARISH -- SHORT

Keybot the Quant remains short as the bears are slapping the bulls silly each day. Financials collapsed yesterday creating a leg lower for stocks. Semiconductors collapse today creating another leg lower. The algo is focused on XLF 24.26, SOX 671.80 and RTH 68.90, financials, semiconductors and retail, respectively. The bulls are on the ropes and need either XLF above 24.26 or SOX above 671.80, otherwise, the beatings will continue. If stocks rally but these two parameters do not reach the levels indicated stocks will reverse and sell off.

The bears need RTH  under 68.90 to create another down leg for stocks so listen for any news on retail stocks overnight. MU drops in afterhours trading which may create negativity for SOX tomorrow. So bulls need either stronger chips or financials to stop the market selling while the bears need weaker retail stocks to continue the downside party.

For the SPX starting at 2003, the bulls need to move above 2030 to regain their mojo and create an upside acceleration to 2040, a formidable task, so bulls will instead focus on pushing financials and semi's higher. The bears need to push the SPX under 1992.50 to accelerate the downside into the 1980's. A move through 1993-2029 is sideways action for Wednesday. The bears are cruising. Pay attention to XLF 24.26 and SOX 671.80 to gauge the strength of any rally.

1/9/15; 9:00 AM EST =
1/6/15; 9:42 AM EST = +3; signal line is +43
1/5/15; 12:36 PM EST = +19; signal line is +43

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