Thursday, February 23, 2017


Keybot the Quant remains long as the bulls slap the bears around day after day. Slap, slap. The algo remains pegged into the ceiling at the maximum and historic +100 level and has not printed any numbers this week thus far. The bulls are partying like its 1999. Bears are dealt a massive blow with utilities ramping higher. UTIL blew through the key 666-667 level like it was standing still and exploded to 682 slapping the bears in the face. Slap, slap.

It appears that Keybot is most fixated on commodities and volatility currently as the main drivers of stock market direction. Bears need GTX under 2366 (now at 2385) and/or VIX above 13.07 (now at 11.74). Bears need lower commodities and higher volatility, respectively. The algo is also tracking copper and a drop in JJC will stall the upside move in stocks. JJC 30.45 is the bull-bear line in the sand with price firmly above at 31.59.

If the bears turn either GTX or VIX bearish, the upside rally is over and the caution flag will be out. If both parameters turn bearish the imminent turn will be in play, and if the SPX drops under 2358, Keybot will likely flip short. The SPX keeps printing new all-time record highs.

For the SPX starting at 2363 on Thursday morning, the opening bell is about 2-1/2 hours away as this message is typed, the bulls need to push up through 2365 and the upside will accelerate to 2370 in a flash. The bears need to push under 2358 to accelerate the downside. A move through 2359-2364 is sideways action. The epic and historic market action continues.

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

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