Friday, March 1, 2013


Keybot the Quant remains short and motored along yesterday without printing any numbers until the pre-scheduled EOM print to cap off February. The algo number is only three points away from the signal line so the bears are leading only by a smidge. Copper and commodities continue to weaken; Dr. Copper is collapsing almost 2% this morning as this missive is typed. Volatility jumped yesterday helping the bears but the VIX stopped short of the 15.65 bull-bear line.  The bear path forward will be solid if the VIX jumps above 15.65 today. The bulls will continue to fight to push markets higher if the VIX drops. The quant is now tracking XLF 17.23 and RTH 45.55 as well. Both remain bullish so any move into the bear camp will embolden the market bears.

For the SPX starting at 1515, the bulls need to push above 1525 to ignite an upside acceleration that will run to 1531 in quick order.  Since the SPX closed at the low yesterday, the bears only need to see a smidge of negativity in the futures and that will light the way to a downside acceleration.  A move through 1516-1524 is sideways action. Keybot prints a pre-scheduled number at 10 AM so the market action can be updated at that time. Markets remain very unstable and erratic.

3/3/13; 7:00 PM EST =
3/1/13; 10:00 AM EST =
2/28/13; 7:00 PM EST EOM = +49; signal line is +52
2/27/13; 10:21 AM EST = +49; signal line is +53

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