Tuesday, March 1, 2016


Keybot the Quant remains long. The bulls charge higher today fueled by lower volatility and higher financials. For Wednesday, watch XLF 21.71 as a bull-bear line in the sand. If price stays above, now at 21.80, the stock market will float higher. Bears need XLF under 21.71 to stop the upside rally. Bears would also benefit from pushing VIX above 19.70.

For the SPX starting at 1978, the bulls need any smidge of green in the overnight S&P futures and the SPX will run into the 1980's. The bears need to push SPX under 1937, a formidable task, so instead bears will likely focus on creating weakness in the banks to stop the upside rally. A move through 1938-1977 is sideways action for Wednesday. The bulls are driving the bus with the algo number 28 points above the signal line. Watch the banks; watch XLF 21.71 since it will tell you the direction of the broad stock market.

3/6/16; 7:00 PM EST =
3/4/16; 9:00 AM EST =
3/1/16; 2:49 PM EST = +51; signal line is +23
3/1/16; 2:23 PM EST = +35; signal line is +22
3/1/16; 1:11 PM EST = +51; signal line is +22
3/1/16; 10:07 AM EST = +35; signal line is +21
2/29/16; 7:00 PM EST EOM = +21; signal line is +20

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