Monday, February 3, 2014

Keybot the Quant Turns Bearish

Keystone's trading algo, Keybot the Quant, flips short this morning at SPX 1768 and the weak utilities and semiconductors are driving markets lower. Bulls need either UTIL 506.57 and/or SOX 523.89 to stop the market bleeding. Bears need NYA 9750 to create more market mayhem. One of these three parameters should flinch providing the market direction answer. If utes and semi's remain bearish, and the NYA remains bullish, equities will stagger sideways. As always, stay alert for a whipsaw but with semiconductors breaking down today, the bears are biting hard and creating extended market weakness. More information is found at Keybot's site;

Keybot the Quant

Note Added 3:40 PM: The NYA loses the 9750 level now printing 9746. "Houston, we have a problem." Equities are in serious trouble now. Watch the 40-week MA on the NYA, 9750.49. Bulls must move the NYA back above 9750 before the closing bell or the carnage will accelerate tomorrow. Bears must keep NYA under 9750 through the closing bell to continue the market mayhem and bloodbath tomorrow.

Note Added 3:44 PM: NYA 9756.39. The bulls realize the seriousness of this important level. Utilities collapse with UTIL at 501. The semiconductor chips crumble like potato chips with the SOX at 516 down -2.3% today.

Note Added 4:04 PM:  The NYA collapses in the final two minutes closing at 9733. "Houston, we have a problem, and it just got significantly worse." The NYA 40-week MA is one of Keystone's Cyclical Market Signals. The NYA gained the 40-week MA in July 2012 and has signaled a cyclical bull market ever since, for 18 months, until a few minutes ago. This signal says equities are now in a cyclical bear market. Watch the NYA 9750 level like a hawk tomorrow since all hope is lost for bulls unless the NYA 9750 is regained pronto. If NYA remains under 9750, the bears will look like Mr. Niceguy today considering the carnage that is about to come.

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