Sunday, November 15, 2015


Keybot the Quant remains short moving into the new week of trading. The Sunday pre-scheduled print results in a 3-point decrease in the signal line; the bears remain in firm control with the algo number 61 points under the signal line. The algorithm ranks financials, semiconductors and volatility as the three key parameters impacting broad market direction for Monday. The bulls need SOX above 647.90 and/or VIX under 18.18 to stop the market selling and confirm the beginning of a relief rally; either one will do. The bears need XLF under 23.82 and stocks will take another strong leg lower.

For the SPX on Monday starting at 2023, the bulls need to push above 2045, about 23 points higher to regain their mojo, a formidable task, so instead bulls are focused on pushing financials and chips higher while sending volatility lower; this activity will at least stabilize markets sideways.

The bears need to push under 2022, only one point lower, to create a downside acceleration, so watch the S&P futures for any smidge of negativity overnight. A move through 2023-2044 is sideways action to begin the week. Keybot prints one pre-scheduled number on Wednesday morning before the opening bell. Since financials, XLF, is only pennies above the bull-bear line in the sand at 23.82, focus on the banks. As banks go, so goes the broad markets.

11/22/15; 7:00 PM EST =
11/18/15; 9:00 AM EST =
11/15/15; 7:00 PM EST = -41; signal line is +20
11/13/15; 12:41 PM EST = -41; signal line is +23

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