Monday, January 12, 2015

STOCK MARKET BEARISH -- SHORT

Keybot the Quant is short moving into the Tuesday session. Will the erratic turmoil continue? The algo is tracking SOX 674.20 as the most important parameter effecting market direction. SOX is at 671.82 in the bear camp creating market negativity. The weak chips are creating the overall stock market weakness. At the opening bell for Tuesday, if SOX stays under 674.20 and moves lower under 671, 670 and lower, the broad indexes will be selling off in earnest. If stocks rally but the SOX does not move above 674.20 then stocks will reverse and sell off. If stocks rally and the SOX moves above 674.20 then a mini recovery rally is underway again and stocks will continue higher.

For the SPX starting at 2028, the bulls need to push the SPX above 2049 to accelerate the upside. The bears need to push under 2023 to accelerate the downside. A move through 2024-2048 is sideways action. The bears are driving the bus. SOX 674.20 will tell the market story in the morning. For now, the caution flag is removed but if the SOX moves above 674.20 consider the caution flag to be back in play.

1/18/15; 7:00 PM EST =
1/16/15; 10:00 AM EST =
1/12/15; 12:54 PM EST = +3; signal line is +36

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