Sunday, March 20, 2016

Keystone's Market Signals

Here are some of Keystone's market signals that are watched daily;

Short-Term (ST; hours and days):

SPX 30-Minute Chart 8/34 MA Cross indicates bullish markets for the hours and few days ahead.

SPX 60-Minute Chart 200 EMA Cross indicates bullish markets for the hours and days ahead.

VIX Daily Chart 200-day MA Cross indicates bullish markets for the days ahead.

BPSPX Daily Chart indicates bullish markets for the days ahead.

Keybot the Quant algorithm is long indicating bullish markets for the days ahead.

Long-Term (LT; weeks and months):

SPX Daily Chart 150 MA Slope indicates a cyclical bear market.

INDU Daily Chart 150 MA Slope indicates a cyclical bear market.

COMPQ Daily Chart 150 MA Slope indicates a cyclical bear market.

RUT Daily Chart 150 MA Slope indicates a cyclical bear market.

SPX Monthly Chart 12 MA Cross indicates cyclical bull market.

NYA Weekly Chart 40 MA Cross indicates cyclical bull market.

UPS Weekly Chart 20/50 MA Cross indicates cyclical bear market.

UTIL Weekly Chart indicates bullish markets for the weeks ahead.

The short term signals can change on a dime. Watch the SPX 30-minute chart that 8/34 MA cross as an early signal indication on market direction.

The cyclical signals are mixed since they are at inflection points. The 150-day MA slope on the SPX is dead flat (see previous chart) deciding whether to turn into a cyclical bull or remain in the cyclical bear pattern. The SPX moved above the 12-month MA on Friday, ditto the NYA 40-week MA cross and UPS 20/50-week MA cross so these three signals have to be watched closely to see if they hold this week or flip.

Pay attention to the slope of the 150-day MA on the SPX since that will tell you a lot over the next couple weeks. The SPX weekly chart is long and strong so it is reasonable to expect higher highs in stocks on the weekly basis.

In the very near-term, the CPC and CPCE put/call ratios are screaming that a top is at hand at anytime (and the drop may be very drastic and quick perhaps a 30 to 100-handle flush in the SPX in the coming days). The high may have printed already on Friday. Stocks may retreat over the coming days or week or two, as the month of March closes out, but then equities should rally again back to current levels in April to honor the long and strong indicators on the weekly charts for the major indexes. Then a potential major and significant market top may occur say between mid-April and Memorial Day.

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