Friday, May 12, 2017


Keybot the Quant remains long during a sleepy week. The algo did not print any numbers until yesterday. Keybot prints a pre-scheduled number shortly after the opening bell this morning.

The drama with financials continue; the algo identifies the banks as the most important parameter currently impacting stock market direction. The bears need to push XLF under 23.61 to verify that selling in the stock market is at hand. Price is at 23.66 only a nickel away. Bulls must push the banks higher to remain in control of the markets. If XLF drops under 23.61, and the SPX drops under 2382, Keybot will likely flip short, hence the imminent turn notation in the title line above.

If the VIX moves above 11.95 (now at 10.60), you will see accelerated downside selling in the stock market. Bulls will be able to recover after any selloff in equities as long as they prevent the VIX from moving above 11.95. Bulls will receive upside strength if they push commodities higher. Bulls need to push GTX above 2290 now at 2214.

The beat goes on. Watch XLF 23.61 to see if it fails, if so, stocks will be trending lower. If VIX moves above 11.95, the bottom will fall out in the stock market.

5/14/17; 7:00 PM EST =
5/12/17; 10:00 AM EST =
5/11/17; 11:13 AM EST = +70; signal line is +54
5/11/17; 10:23 AM EST = +54; signal line is +53
5/7/17; 7:00 PM EST = +70; signal line is +53

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