Friday, December 11, 2015


Keybot the Quant remains on the short side heading into the Friday session. The algo was very active in the Thursday session printing six numbers. The bulls were using volatility and the SPX 2053 level to fight their way higher. Financials went higher with XLF at 24.21-24.23, the level the algo calls out, and then price was spanked down. The bulls did not have the juice to push XLF higher. Isn't it amazing the algo can identify these parameters and levels before they occur?

The bears remain in control. The algo number is 29 points under the signal line. Watch SPX 2052-2053 a very key level. The stock market will be in a cyclical bear market for weeks and months ahead if the SPX remains under 2052 and lower. Watch VIX 18.50. Bulls got nothing unless they push the VIX under 18.50.

For Friday for the SPX starting at 2052, the bulls need to push above 2068 to accelerate the upside. The bears need to push under 2046 to accelerate the downside. A move through 2047-2067 is sideways action to end the week. S&P futures are tanking -18 about 90 minutes before the opening bell. Keybot prints a pre-scheduled number at 10 AM.

A weak start is on tap, however, if markets recover and the SPX moves above 2068, and VIX under 18.50, Keybot will likely flip long.

12/13/15; 7:00 PM EST =
12/11/15; 10:00 AM EST =
12/10/15; 3:56 PM EST = -27; signal line is +2
12/10/15; 3:08 PM EST = -13; signal line is +3
12/10/15; 2:33 PM EST = +1; signal line is +4
12/10/15; 12:55 PM EST = -13; signal line is +4
12/10/15; 12:16 PM EST = -27; signal line is +4
12/10/15; 10:31 AM EST = -13; signal line is +5
12/9/15; 12:27 PM EST = -27; signal line is +4

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