Sunday, February 12, 2017


Keybot the Quant remains long moving into the new week of trading. The algo is pinned to the maximum +100 possible level verifying the ongoing historic bullishness in the stock market. The multiple prints of +100 may be indicating that an epic multi-month and/or multi-year stock market top may be occurring as the weeks play out.

All of the quant's parameters are blown out to the upside producing the +100 historic reading. The only way the market bears can stall the upside in equities is to push UTIL back under 666 (now at 669.68). Weaker retail stocks would also help the bears if they can push RTH under 76.57 but it begins the week at a lofty 77.99. The bulls are drinking champagne without any worries in the world. Every day is a euphoric bullish party.

For the SPX starting at 2316, the bulls need to push above 2319 and bingo, price will be in the mid-2320's in a flash. The bears need to push below 2311 to accelerate the downside. A move through 2312-2318 is sideways action for Monday.

Keybot prints one pre-scheduled number this week on Friday morning. The bulls are in control with the algo number 25 points above the signal line but the +100 represents a maximum overbot condition for the stock market. There will likely be lots of drama around the UTIL 666 level as the bulls and bears duke it out. Bears desperately need UTIL back under 666, otherwise, stocks may remain lofty for several weeks ahead.

2/19/17; 7:00 PM EST =
2/16/17; 9:00 AM EST =
2/12/17; 7:00 PM EST = +100 signal line is +75
2/10/17; 10:28 AM EST = +100 signal line is +74

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