Sunday, March 3, 2013


Keybot the Quant is short going into the Monday session and the bears will have to bring some firepower, or they will fold like a cheap suit. Volatility is going to determine the direction of the broad indexes at the bell. If VIX stays under 15.65, the bulls rule. If the VIX moves above 15.65, the broad markets will be selling off. For the SPX starting at 1518, the bulls only need to see two positive points, to move above 1520, to ignite an upside acceleration. If VIX stays under 15.65 and the SPX moves above 1520, Keybot will likely flip long. Therefore, the overnight futures are important. The bears need to push under 1502 to accelerate a downside move to the mid 1490's. A move through 1503-1519 is sideways action for Monday.  VIX 15.65 and SPX 1520 will dictate market direction.  If a strong gap up occurs at the opening bell, this may trigger a timer which would delay Keybot's move to the long side by about 90 minutes. Keybot prints one pre-scheduled number this week on Friday morning. The opening bell will tell a lot.

3/10/13; 7:00 PM EST =
3/8/13; 9:00 AM EST =
3/3/13; 7:00 PM EST = +49; signal line is +46 but algorithm says stay short
3/1/13; 12:05 PM EST = +49; signal line is +47 but algorithm says stay short

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