Tuesday, December 15, 2015


Keybot the Quant remains short moving into the Tuesday session. Keybot printed one number in the Monday session as was anticipated due to utilities supplying some bullish strength. The algo number remains 22 points under the signal line keeping market bears in control of the stock market.

For Tuesday, the bulls need SOX above 660.90, SPX above 2052, and/or VIX under 19.27. Any two of the three will likely cause Keybot to flip to the long side. If only one or none of the three flip to the long side, then any stock market rally will likely be short-lived and stocks will roll back over to the down side. Market bulls need at least two of the parameters to turn bullish to prove they have the beans to take stocks higher.

For the SPX starting at 2022, the bulls only need one point of upside and an acceleration higher will occur. S&P futures are up +17 two hours before the opening bell so this scenario is already in play. If an upside orgy occurs, watch that key SPX 2050-2053 area where price will likely make an important bounce or die decision. The SPX may choose to sit at this level when Fed Chair Yellen determines the fate of all global stock, currency and bond markets tomorrow afternoon.

The bears need to retrace yesterday's move and push the SPX under 1993 to regain their mojo, a formidable task especially with futures through the roof, so instead, bears will focus on keeping chips (SOX) weak and volatility (VIX) elevated.

12/16/15; 9:00 AM EST =
12/14/15; 9:36 AM EST = -28; signal line is -6
12/13/15; 7:00 PM EST = -44; signal line is -4

No comments:

Post a Comment

Note: Only a member of this blog may post a comment.