Tuesday, December 8, 2015


Keybot the Quant remains long as the SPX comes down to tag the 2053-2054 called out by the algorithm before the bell. Isn't it amazing the algorithm can identify the most important parameters with their exact price level before they occur? It is absolutely astounding. The SPX bounced off this area shortly after the opening bell and never looked back. The algo prints two numbers but remains long.

The SPX 2052.82 level remains very key. Also VIX 18.50. Market bears were not able to push under SPX 2053, and hold it, or VIX above 18.50, so the bears got nothing. Interestingly, however, financials collapse late in the day creating negativity. Financials are the entire key for Wednesday so watch for any news on the banks overnight. XLF begins at 24.24 and 24.23 is the bull-bear line in the sand identified by Keybot. The XLF is only one single penny on the bull side. Whichever way finanicals go, the markets go. If XLF drops under 24.23 and the SPX drops under 2052, Keybot will likely flip short. If XLF remains above 24.24 and heads higher, the bears are toast and markets will rally higher all day.

For the SPX starting at 2064, the bulls need to touch the 2074 handle and the upside will accelerate quickly to 2080. The bears need to push under 2052 and stocks will be falling like a stone. A move through 2053-2073 is sideways action for Wednesday. Financials, XLF 24.23, hold the answer to stock market direction for Wednesday. The banks are the key.

12/13/15; 7:00 PM EST =
12/11/15; 10:00 AM EST =
12/8/15; 3:50 PM EST = +17; signal line is +5
12/8/15; 3:31 PM EST = +1; signal line is +4 but algorithm remains long
12/6/15; 7:00 PM EST = +17; signal line is +4

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