Keybot the Quant remains short through the weekend. The algo took a day or so to latch all the necessary parameters in place, and the SPX popped above 1843, to create the flip to the long side, but the signal line continues higher as well nullifying the move. The algo number and signal line are dead even. Markets are at an exact inflection point and do not know which way to move. Financials, retail, copper and volatility are all important. The bulls maintain the XLF above 21.42 which keeps the stock market elevated. The RTH was within a couple pennies of the bull-bear line, ready to turn bullish and add market upside fuel, but instead leaked lower.
Both sides were content to let things settle over the weekend and decide the winner next week. The areas and levels of greatest interest to the algo can be identified tomorrow after the Sunday pre-scheduled number prints. Bears need weaker financials; it holds the key to their victory. Bulls need a higher retail sector so any good news about customer spending would send them to victory. Flip a coin. The winner will likely be clear come Monday or Tuesday.
2/23/14;
7:00 PM EST =
2/21/14; 9:51 AM EST
= +32; signal line is +32
2/20/14;
12:29 PM EST = +32; signal line is +31 but algorithm remains short
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