Thursday, March 2, 2017


Keybot the Quant remains long. The bears tried to flip the model short but are not successful. Keybot wants to flip short but the internal parameters will not fully latch as yet to permit the move. The VIX ran higher this morning towards the 12.86 but the bulls rushed in to crush the VIX. GTX fails under the important 2367 level which ushers in market weakness. The bears could not gain traction lower in the stock market because volatility was jammed lower. The SPX came down to kiss the 2380 level but would not fail there. Isn't it amazing that Keybot can call out these key areas and inflection points before they occur?

The market bears need the SPX to drop under 2380 to flip the model short and begin downside damage. However, the bears do not want a gap-down move at the opening bell since this will likely trigger a timer that prevents the move to the short side for approximately 90 minutes. Bears will be happy if the SPX drifts slowly lower under 2380 then progresses slowly lower. So the bears need to see only 2 negative points in the S&P futures to set up a negative day for Friday and to flip the algo short. If VIX moves above 12.84, the stock market is toast. Bulls will continue to rule if the VIX remains under 12.84.

The SPX begins Friday at 2382. The bulls need to push above 2395 to send the SPX above 2400 in quick order. GTX 2367, VIX 12.84 and SPX 2380 tells you everything you need to know for Friday.

3/5/17; 7:00 PM EST =
3/2/17; 11:34 AM EST = +86 signal line is +92 but algorithm remains long
3/2/17; 11:13 AM EST = +100 signal line is +91
3/2/17; 10:10 AM EST = +86 signal line is +90 but algorithm remains long

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