Keybot the Quant remains long through the weekend. The algo did not print any numbers on Friday. Stocks dropped like a rock at the opening bell but you saw that the VIX did not move above 16.60 so the bears had nothing. In addition, did you see XLF come down to test the 24.00-24.10 area identified by the algorithm ahead of time? Yes, the XLF came down and bounced telling you the bears had nothing. Stocks recover all day Friday as volatility dropped and utilities move higher. The SPX ran above 2102 so bingo, price jumped to the 2110 level.
The bears suffer another big blow since UTIL finished at 600. That number was good for the bears last week with the bull-bear line at 603 but next week the bull-bear line in the sand is 586 for all five days. Therefore, at Monday morning's opening bell, the bulls will immediately receive a thrust of positivity with the higher utilities since UTIL will be above 586. Bears need to push utes lower and volatility higher
Next week volatility and utilities remain the key market direction drivers (identified by Keybot) to begin the week. Exact levels can be identified once the Sunday pre-scheduled number prints tomorrow.
2/22/15;
7:00 PM EST =
2/19/15; 12:22 PM EST
= +54; signal line is +50
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