Sunday, March 24, 2013


Keybot the Quant is bullish as the new week of trading begins. Market direction will be determined by the Cyprus resolution, or lack thereof.  The algo continues to treat volatility as the main market driver. Very simply, the broad indexes will float higher if the VIX stays under 14.95.  If the VIX moves above 14.95, the bears will growl. Semiconductors are gaining importance; watch SOX 421 since failure of this level will usher in significant market selling. If the bulls keep SOX above 421, there is no worries.

For the SPX starting at 1557, interestingly exactly where Keybot whipsawed the other day, the bulls only need one single point, to touch 1558 and it is off to the races higher with the 1565 all-time closing high easily in sight. The bears must push the SPX under 1446 to accelerate the downside. A move through 1447-1557 is sideways action. Markets remain highly erratic and unstable. VIX 14.95 dictates market direction. Keybot prints two pre-scheduled numbers this week, one on Tuesday and one on Friday. U.S. markets are closed on Friday in Observance of Good Friday.

3/31/13; 7:00 PM EST EOM =
3/29/13; 10:00 AM EST =
3/26/13; 10:00 AM EST =
3/24/13; 7:00 PM EST = +49; signal line is +40

No comments:

Post a Comment

Note: Only a member of this blog may post a comment.