Tuesday, February 26, 2013


Keybot the Quant is bearish going into the Tuesday session. Yesterday was a wild market day.  RTH dropped under 45.54, by pennies, which creates market bearishness. At the opening bell it would not be surprising to see RTH recover. XLF 17.21 is important as well and remains one nickel on the bullish side. Thus, as an initial gauge for markets at the opening bell, the bears want RTH to stay under 45.54 and pull XLF under 17.21. The market bulls want to keep XLF above 17.21 and pull RTH above 45.54.  VIX 15.70 is most important. Even if the broad indexes recover substantially today, if the VIX stays above 15.70 the bears have no worries.

For the SPX starting today at 1488, the bears only need to see a smidge of red in the futures and that will create a further downside acceleration at the open. The bulls will simply try to stop the downside momo by targeting RTH 45.54 and VIX 15.70.  The HD earnings is due to hit in minutes and that will dictate the RTH movement. A move through 1489-1525 is sideways movement today. Markets remain unstable and erratic. Keybot prints a pre-scheduled number at 10 AM so the action can be updated at that time.

2/28/13; 7:00 PM EST EOM =
2/26/13; 10:00 AM EST =
2/25/13; 3:59 PM EST = +31; signal line is +61
2/25/13; 3:20 PM EST = +47; signal line is +62; go short 1502; (Benchmark SPX for 2013  = +5.3%)(Keybot this trade = -1.3%; Keybot for 2013 = +2.2%)(Actual this trade = -1.5%; Actual for 2013 = +1.0%)

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