Thursday, May 19, 2016


Keybot the Quant remains short after the Wednesday drama. The algo prints five numbers yesterday and is champing at the bit to go long. The internal program requirements are not yet latching to allow the move. Keybot wants to go long right now and if the SPX touches the 2061 handle the algo will likely flip long. The main driver of stocks yesterday were the chips and financials. Banks took off to the upside creating support under the stock market.

Semiconductors are the main parameter controlling market direction right now. Keybot identifies the SOX 649.30 level as the key bull-bear line. Price is at 649.35 only pennies above in the bull camp which creates stock market buoyancy. It is always amazing to see markets move and end the day at a parameter and price level that Keybot identifies ahead of time. Robots are smarter than humans. The bears need SOX under 649.30 or they got nothing. This level will determine the direction of stocks Thursday morning.

For the SPX starting at 2048, the bulls need to push above 2061 to accelerate the upside while the bears need to push under 2035 to accelerate the downside. A move through 2036-2060 is sideways action for Thursday. The algorithm remains short but wants to go long. Watch SOX 649.30 and SPX 2061 to see who wins.

5/22/16; 7:00 PM EST =
5/18/16; 3:59 PM EST = +63; signal line is +60 but algorithm remains short
5/18/16; 3:18 PM EST = +47; signal line is +61
5/18/16; 3:07 PM EST = +63; signal line is +62 but algorithm remains short
5/18/16; 2:32 PM EST = +47; signal line is +63
5/18/16; 10:16 AM EST = +63; signal line is +65
5/17/16; 9:49 AM EST = +47; signal line is +66

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