Tuesday, January 5, 2016


Keybot the Quant remains bearish moving into Wednesday's trade. The battle is between utilities and volatility. Bulls need VIX under 19.18 to signal a strong upside rally ahead for equities and Keybot will likely flip long. Bears need to push UTIL under 579.07 to begin downside selling in stocks and RTH under 76.40 and UTIL under 572.36 will add lots more bear fuel to crush stocks lower. So VIX 19.18 and UTIL 579.07 tell you the market direction answer after the opening bell.

For the SPX starting at 2017, the bulls need to push above 2022 and bingo, the upside will accelerate towards 2030. The bears need to push under 2004 to accelerate the downside immediately under 2000 and into the 1990's. A move through 2005-2021 is sideways action for Wednesday. The bears are driving the bus but the bulls are wresting for the steering wheel with the algo number only seven points under the signal line.

1/8/16; 9:00 AM EST =
1/5/16; 1:47 PM EST = -8; signal line is -1
1/5/16; 10:40 AM EST = -24; signal line is +0

No comments:

Post a Comment

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