Sunday, March 27, 2016


Keybot the Quant is on the short side moving into the new week of trading. The algo flipped into the bear camp last Thursday morning which was the last trading day of the week. Markets remain a coin flip with the bears winning with the algo number 13 points below the signal line. Monday is a battle between the S&P 500, NYA Index and commodities. These three parameters are most affecting broad market direction currently; SPX 2030, NYA 10181 and GTX 2156. The SPX is above 2030 creating market bullishness. The NYA is under 10181 and GTX under 2156 creating bearish negativity in the stock market that reared its head late last week.

The bulls need either NYA above 10181 and/or GTX above 2156 to restart the upside stock market rally and place Keybot in the position to likely flip back to the long side. Therefore, the imminent turn notation remains in the title line. The bears need SPX under 2030 and downside carnage will begin.

For the SPX starting at 2036, the bulls need only a smidge of positivity in the overnight futures and bingo, the upside will accelerate several handles after the opening bell to 2040 in a flash. The bears need to push under 2022 to create a downside acceleration. As mentioned, however, if 2030 fails, the SPX will drop like a rock to test 2022 in a heartbeat where it would either bounce or die. The SPX must push under 2022 to prove it has the beans to take stocks much lower. A move through 2023-2035 on Monday would be deemed a sideways day. The bears are in control. Watch SPX 2030 and GTX 2156. Keybot prints four pre-scheduled numbers this week as March ends on Thursday (EOM) and April begins on Friday.

4/3/16; 7:00 PM EST =
4/1/16; 10:00 AM EST =
4/1/16; 9:00 AM EST =
3/31/16; 7:00 PM EST EOM =
3/29/16; 10:00 AM EST =
3/27/16; 7:00 PM EST = +64; signal line is +77
3/24/16; 2:44 PM EST = +64; signal line is +76

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