Tuesday, December 15, 2015


Keybot the Quant remains short as the bulls and bears fight for control ahead of the Fed decision. The stock market is a coin flip. The model was in position to go long but the internal parameters would not latch to permit the move. The imminent turn warning is in the title line. A pre-scheduled number prints before the bell.

Financials are the key to market direction for Wednesday. Watch the XLF 24.09 bull-bear line in the sand. Price is at 24.05 only four pennies in the bear camp causing market negativity. As the banks go, so go the markets. Market bears will be in great shape if the XLF continues to drop from here. Market bulls will win if the XLF moves above 24.09. If the XLF moves above 24.09, and the SPX above the 2050-2054 area, Keybot will likely flip to the long side.

For the SPX on Wednesday starting at 2043, the bulls need to push above 2054 to create an upside acceleration to 2060+ in a flash. The bears need to push below 2026 to accelerate the downside, a formidable task, so the bears will focus on pushing XLF lower which will provide them victory. Watch XLF 24.09; it will dictate market direction.

12/20/15; 7:00 PM EST =
12/16/15; 9:00 AM EST =
12/15/15; 3:37 PM EST = -12; signal line is -8
12/15/15; 1:57 PM EST = +4; signal line is -8 but algorithm remains short
12/15/15; 1:27 PM EST = -12; signal line is -8
12/15/15; 1:03 PM EST = +4; signal line is -7 but algorithm remains short
12/15/15; 9:39 AM EST = -12; signal line is -7
12/14/15; 9:36 AM EST = -28; signal line is -6

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