Keybot the Quant is long moving into the new week of trading. The algo is prioritizing volatility as the most important parameter currently impacting market direction. Watch VIX 14.38 with price beginning at 13.33 one point below the critical bull-bear line in the bull camp creating market positivity. If the VIX moves above 14.38, and the SPX drops under 2065, Keybot will likely flip short. Hence, the imminent turn notation remains in play. Market bulls are fine as long as they keep VIX under 14.38.
For the SPX starting at 2068, the bulls need to touch the 2076 handle and an upside acceleration will occur to 2080 plus. The bears need to push under 2065 to accelerate the downside. A move through 2066-2075 is sideways action for Monday. S&P futures are -9 Sunday evening in the States which would clearly kick in the downside. If the negativity remains into tomorrow morning than volatility will tell the tale. If the stock market sells off after the opening bell, and VIX stays under 14.38, the bears got nothing and stocks will recover. If the VIX moves above 14.38, the market selling is real and sustainable.
12/7/14;
7:00 PM EST =
12/5/14;
9:00 AM EST =
11/30/14; 7:00 PM EST
EOM = +58; signal line is +53
11/26/14;
10:00 AM EST = +58; signal line is +52
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