Sunday, September 4, 2016


Keybot the Quant remains bearish moving into the new week of trading which does not begin until Tuesday morning. US markets are closed on Monday due to the Labor Day Holiday. Markets stagger choppy sideways as the retail sector battles volatility for control of broad market direction. Market bulls need RTH above 79.52 (now at 79.37) to send the stock market higher. Bears need VIX above 14.45 (now at 11.98) to send equities lower. If RTH moves above 79.52, consider the imminent turn to be in play and if the SPX is running above 2185, Keybot may flip to the long side.

If retail stocks remain bearish and volatility remains bullish, stocks will stagger sideways with a slight upward bias. Since the RTH target is a game of pennies, listen for news on any retail stocks over the next day which will impact the sector and then send the broad market in the same direction.

Utilities are becoming more important to Keybot as time moves along. The algo is tracking UTIL 656.28 as a bull-bear line in the sand for all of this week. Price is at 673.11 comfortably above. It gets interesting since all of the following week the line in the sand will be UTIL 672.35 and as seen by the current price, it is there. Watch the 656.28 closely this week and then focus on 672.35 during the afternoon trading on Friday and see where UTIL closes the week; it will tell you a lot about the week of 9/12.

For the SPX starting at 2180 on Tuesday morning, the bulls need five points, to touch the 2185 handle and bingo, stocks will accelerate higher. The bears need to push below 2174, six points lower, to accelerate the downside. A move through 2175-2184 on Tuesday is sideways action. Keybot does not print any pre-scheduled numbers this week. The retail sector will dictate broad market direction to begin the week.

9/11/16; 7:00 PM EST =
9/4/16; 7:00 PM EST = +50; signal line is +66
9/2/16; 10:49 AM EST = +50; signal line is +68
9/2/16; 10:09 AM EST = +66; signal line is +69
9/2/16; 9:00 AM EST = +50; signal line is +70
9/1/16; 11:14 AM EST = +50; signal line is +71
9/1/16; 10:36 AM EST = +36; signal line is +72
8/31/16; 7:00 PM EST EOM = +50; signal line is +73
8/30/16; 10:00 AM EST = +50; signal line is +74

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