Monday, January 11, 2016


Keybot the Quant remains short printing one number to begin the new week of trading. Utilities were higher so you knew that the stock market would not break down. The algo number is above the signal line so Keybot is champing at the bit to go long and will as soon as all the necessary parameters latch. If the SPX moves above 1936, Keybot will likely flip long. If VIX drops under 19.42 the bulls are launching a strong recovery rally.

Watch two levels for UTIL; 577.25 and 577.95. If utilities break down and UTIL falls under 577, with all other parameters as is, the stock market has an increased potential of crashing. If UTIL loses 577 you had better run for cover since there will likely be a bloodbath hitting at anytime. If UTIL moves higher, the bulls will continue to create a recovery rally.

For the SPX starting at 1924, the bulls need to push above 1936 to regain their mojo, and as stated above, Keybot will likely flip long. The bears need to push under 1901 to accelerate the downside. A move through 1902-1935 is sideways action for Tuesday. At the opening bell, either SPX heads towards 1936 signaling the all-clear for the upside, or, utilities will crumble creating market negativity.

1/17/16; 7:00 PM EST =
1/15/16; 10:00 AM EST =
1/11/16; 9:36 AM EST = -24; signal line is -29 but algorithm remains short
1/10/16; 7:00 PM EST = -40; signal line is -29

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