Wednesday, May 7, 2014

STOCK MARKET BULLISH -- LONG -- CAUTION -- TURN MAY BE IMMINENT

Keybot the Quant remains long as the market price antics continue. Monday closes at the SPX price highs and Tuesday at the price lows. XLF collapses through the important 21.82 identified by the algo so equities weaken. Bears need VIX 14.60 or GTX 4943 to receive further bear fuel. Keybot has wanted to go short since Monday but the internal latching continues to not line up properly to create the move to the bear side. The SPX drops yesterday to 1867 but Keybot needed another one point or more to help create the move to the bear side. Bulls need XLF back above 21.82 or JJC 37.42 to stop the market downside

This is unique price action currently since the model does not remain in one direction, while the algo number and signal line number remain in the other direction, for more than a couple days time. Thus, something should occur today to firmly decide on market direction. There are other programming rules in place now due to the odd price action so even if the SPX drops at the opening bell a gap-down or percent-drop timer may click into place to prevent the move to the short side.

In general, Keybot should flip short if the SPX 1862-1868 level fails. There are too many moving parts to provide a more accurate estimate. Keybot will simply have to see the 1's and 0's and do its thing. The bulls are in charge but as evidenced by the algo number 18 points under the signal line, the algo wants to flip short. Bulls need XLF 21.82. Bears need VIX 14.60. Markets are very unstable.

5/11/14; 7:00 PM EST =
5/6/14; 9:36 AM EST = +33; signal line is +51 but algorithm remains long

No comments:

Post a Comment

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