Tuesday, April 5, 2016


Keybot the Quant remains short. The NYA lost the important 10140 level which ushered in another leg lower for the stock market. Bulls need either NYA above 10140 or JJC above 25.09 to stop the market selling. Bears need the SPX to drop under 2029 which would usher in a strong flush lower for equities.

For the SPX starting at 2045 for Wednesday's trade, the bulls need to push above 2062, a formidable task, to create an upside acceleration, so instead the bulls will focus on pushing NYA and JJC above the targets above which would restart the rally. The bears need to push the SPX under 2043 and a downside acceleration will occur probably targeting a test of 2029 in quick order. A move through 2044-2061 is sideways action for hump day.

It is interesting to see the SPX retreat over the last couple days coming back down to where the algorithm flipped short late Friday at SPX 2045-2046. Keybot's position flip to the bear camp looked odd at the time because the SPX jumped to 2075 but price came all the way back down. Robots are always smarter than humans.

4/10/16; 7:00 PM EST =
4/5/16; 9:36 AM EST = +50; signal line is +73
4/3/16; 7:00 PM EST = +64; signal line is +75

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