Monday, July 27, 2015


Keybot the Quant remains long but the bears came to play to begin the week. The VIX jumps above 13.85 creating the selling pressure today. This warrants the caution flag. If the financials are weak on Tuesday, with the XLF dropping under 24.82 (now at 24.94) and the SPX under 2064, Keybot will likely flip short. The bulls need to push volatility, the VIX, under 13.85 to stage a rally in stocks. Thus, bears win with XLF under 24.82 and bulls win if VIX drops under 13.85. If XLF remains bullish and VIX bearish, stocks will stumble sideways with a slight upward bias.

For the SPX starting at 2068, the bulls need to push above 2078 and an upside acceleration will occur. Bears need to push under 2064 to create a downside acceleration. The year began at 2059. July began at 2063. A move through 2065-2077 is sideways action for Tuesday. If the XLF loses 24.82, consider the 'imminent turn' notation to be in the title line.

7/28/15; 10:00 AM EST =
7/27/15; 9:36 AM EST = -6; signal line is -15
7/26/15; 7:00 PM EST = +8; signal line is -15

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