Monday, September 12, 2016


Keybot the Quant remains short after a big snap-back rally occurs to begin the week. Keybot prints one number which drives the model more bearish. It is surprising to see the rally after the utilities failed. After the opening bell, both the semiconductors and financials were on the verge of creating more downside but recovered.

For Tuesday, stocks would be expected to roll back over to the downside unless utilities move higher and/or volatility lower. Watch UTIL 672.35 now at 667.52 creating bearishness. Watch VIX 14.51 now at 14.96 creating bearishness.

If UTIL moves above 672.35 and VIX below 14.51, consider the imminent turn to the long side to be in play. If both of these parameters turn bullish and the SPX moves above 2163, Keybot may flip to the long side.

For the SPX starting at 2159, the bulls need to push above 2163 and the upside will accelerate quickly towards 2170. The bears need to push below 2119 to get their mojo back. A move through 2120-2162 is sideways action for Tuesday. The bears remain in control. Watch utilities and volatility. The intraday moves and day-to-day moves will increase in magnitude in the major indexes as volatility rises.

9/18/16; 7:00 PM EST =
9/16/16; 10:00 AM EST =
9/12/16; 9:36 AM EST = +20; signal line is +52
9/11/16; 7:00 PM EST = +36; signal line is +55

No comments:

Post a Comment

Note: Only a member of this blog may post a comment.