Keybot the Quant remains short as the wild market action rolls along. At the bell, Keybot wants to go long but is held back since internal programming rules will not yet permit the move. If all things remain as is, Keybot will flip long if the SPX moves above 1803 on Thursday, a formidable task that requires a retracement of today's selloff, but, not impossible in these unstable and erratic markets. The algo is now tracking UTIL 477.87, XLF 20.98, GTX 4811 and VIX 14.02. Utilities, financials and commodities are creating market bullishness while volatility creates bearishness, respectively, thus, bulls need to push the VIX under 14.02 while the bears need to meet the UTIL, XLF and GTX thresholds to gain downside fuel. UTIL 477.87 is the trap-door for markets and it opened for a few minutes today but would not remain open. GTX closed at 4812 only one single point in the bull camp.
The SPX begins at 1782, a strong support level so price will either bounce, or die. The bears need to push under 1780, only 2 points lower, to accelerate the downside. The bulls need to retrace today's drop and push the SPX above 1803 to regain their mojo. Since this is a difficult task, the bulls will simply be happy to keep UTIL, XLF and GTX all elevated, while pushing volatility any amount lower, and this will be enough to stop the market downside. Markets remain a coin-toss and this is verified by the algo number and signal line at only one point difference. Note the 2:36 PM EST print today where the numbers were dead even at +46.
12/15/13;
7:00 PM EST =
12/11/13; 3:59 PM EST
= +46; signal line is +45 but algorithm remains short
12/11/13; 3:11 PM EST
= +32; signal line is +45
12/11/13; 2:36 PM EST
= +46; signal line is +46
12/11/13; 11:31 AM
EST = +32; signal line is +45
12/11/13; 11:21 AM
EST = +46; signal line is +45 but algorithm remains short
12/11/13;
9:39 AM EST = +32; signal line is +44
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