Tuesday, May 17, 2016


Keybot the Quant remains short as the roller coaster ride continues. Choppy markets chew up and spit out bulls and bears alike. The Tuesday pre-scheduled number prints and one number printed in the Monday session yesterday. The algo number remains 4 points under the signal line. The bulls are trying to mount a charge higher but S&P futures are negative moving into the Tuesday trade.

The algo is identifying semi's and retail stocks as the key drivers of market direction currently. Bulls win if SOX moves above 649.50. Bears win if RTH drops under 75.77. If chips remain bearish and retail stocks remain bullish, the stock market will stagger sideways with an upward bias.

For the SPX starting at 2067, the bulls need to touch the 2072 handle and bingo, the S&P 500 will run strongly higher towards 2080. The bears need to push under 2047 to accelerate the downside. A move through 2048-2071 is sideways action for Tuesday.

The bears are driving the bus but if SOX moves above 649.50 consider an imminent turn to be in play and if the chips turn bullish and the SPX moves above 2067, Keybot will likely flip long.

5/22/16; 7:00 PM EST =
5/17/16; 9:00 AM EST = +63; signal line is +67
5/16/16; 1:03 PM EST = +63; signal line is +67
5/15/16; 7:00 PM EST = +47; signal line is +68

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