Keybot the Quant is long but markets are slightly troubled after the jobs report disappointed. The futures are leaking lower and as last evening's missive describes watch SPX 1389. XLF is very important since if 15.20 fails Keybot will likely move to the short side. Pre-market XLF is now printing 15.26 only pennies away from failure. Watch VIX 18.10 as well. Hang on tight this morning. Keybot may be flipping to the short side after the open; it all depends on if the markets want to drift along sideways, or, if the XLF 15.20 fails it should trigger a strong downward push for the broad indexes. If XLF does not fail the bears will run out of gas and markets will recover. The pre-scheduled number minutes ago now moves the algo number to within two points of the signal line. The bulls and bears are in the trenches fighting for control of the markets. Caution is warranted. A turn may be imminent. XLF 15.20 and VIX 18.10 will provide the answer. This may be a hectic morning ahead.
5/6/12; 7:00 PM EST =
5/4/12; 9:00 AM EST = +30; signal line +28
5/3/12; 9:30 AM EST = +30; signal line +27
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