Sunday, February 19, 2017


Keybot the Quant will begin the new week of trading on Tuesday on the long side. US markets are closed on Monday in observance of Presidents Day holiday. The algo remains pegged at the historic +100 level. The epic loftiness in the stock market continues.

Market bears need one of three things to happen to stop the upside move in stocks; either UTIL under 666.65 (now at 672), GTX under 2364 (now at 2393) and/or VIX above 13.16 (now at 11.49). If all three remain bullish, stocks will keep floating along sideways with an upward bias.

For the SPX starting on Tuesday at 2351, the bulls need any smidge of positivity in the S&P futures and the S&P 500 will rally several handles higher. The bears need to push below 2340 to regain their mojo. A move through 2341-2350 is sideways action to begin the US trading this week on Tuesday. Keybot prints one pre-scheduled number this week on Friday morning.

The bulls remain in control. If any one of the three parameters in the second paragraph turn bearish, consider the caution flag out. If 2 of the 3 turn bearish, the imminent turn notation will be in play. If 2 of the 3 parameters turn bearish, and the SPX drops below 2340 on Tuesday, Keybot will likely flip short.

2/26/17; 7:00 PM EST =
2/24/17; 10:00 AM EST =
2/19/17; 7:00 PM EST = +100 signal line is +79
2/16/17; 9:53 AM EST = +100 signal line is +78

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