Thursday, April 7, 2016


Keybot the Quant remains short. Keybot prints two numbers today and the algo number is 35 points under the signal line with the bears in firm control. NYA turns bearish again and financials collapse ushering in market weakness. Friday appears to be setting up as a fight between financials and the SPX. Market bulls need to push XLF above 22.16 and this will at least stop the stock market selling and send stocks sideways with an upward bias into the weekend.

Market bears need SPX to drop under 2029 and stocks will likely sell off very strong perhaps going into free fall to 2000. If SPX remains above 2029, and XLF remains under 22.16, the stock market will remain in status quo, staggering sideways like a drunkard on Saturday night.

For the SPX starting at 2042, the bulls would need to push above 2063 to regain their mojo, a formidable task, so instead bulls will focus like a laser on pushing the banks higher. The bears need to push under 2034 to accelerate the downside. A failure of 2034 will immediately send price to the 2029 for a critical bounce or die decision. A move through 2035-2062 is sideways action to end the week. Listen for any news on banks overnight and watch XLF 22.16 and SPX 2029 as the key to broad market direction forward.

4/10/16; 7:00 PM EST =
4/7/16; 10:22 AM EST = +34; signal line is +69
4/7/16; 9:36 AM EST = +50; signal line is +71
4/6/16; 3:11 PM EST = +64; signal line is +72

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