Wednesday, March 23, 2016


Keybot the Quant remains long but the algo is champing at the bit to go short. The algo number is below the signal line but the necessary parameters have not latched to permit the move to the bear side. If the SPX drops under 2035 on Thursday morning, Keybot will likely flip short. If GTX moves above 2156.50 (now only one point beneath), all bets are off for bears and the bulls will stabilize equities sideways with a slight upward bias. If the 2035 fails and Keybot flips short, watch the 2030 level; if this fails, stocks may go into a quick free fall.

For the SPX starting at 2037, the bulls need to touch the 2049 handle and bingo, price will accelerate higher into the Easter weekend. US markets are closed on Friday. The bears need to push under 2035 to accelerate the downside and Keybot will likely flip short. A move through 2036-2048 is sideways action.

If bullish, you want GTX above 2156.50 as soon as possible. If bearish, youi want the SPX to drop under 2035 and then a failure at 2030 will likely create downside carnage.

3/27/16; 7:00 PM EST =
3/23/16; 2:39 PM EST = +64; signal line is +76 but algorithm remains long
3/23/16; 9:36 AM EST = +78; signal line is +75
3/22/16; 10:26 AM EST = +92; signal line is +74

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