Sunday, May 7, 2017


Keybot the Quant remains long as the sideways move through SPX 2330-2400 continues for the last three months. The S&P 500 is at 2399 testing the upper boundary of this sideways channel. The algo number is comfortably 17 points above the signal line.

The bulls need stronger copper and commodities to drive the stock market higher. The bears need lower financials and higher volatility to send stocks lower. Banks are key. Watch XLF 23.58 the top parameter the algo is currently tracking. XLF is at 23.84 on the bull side which creates upside strength in the stock market. Stocks will turn quickly sour if XLF falls under 23.58.

The algo likely needs both XLF under 23.84 and VIX above 12.00 to flip short, however, if XLF comes down to the critical 23.58-ish level, and jogs above and below for a few hours, that may be enough to flip the model short once XLF would fail from 23.58.

Pay attention to XLF 23.58 and VIX 12.00 to gauge broad stock market direction to begin the new week of trading. Copper is important. Keybot prints one pre-scheduled number this week on Friday morning.

5/14/17; 7:00 PM EST =
5/12/17; 10:00 AM EST =
5/7/17; 7:00 PM EST = +70; signal line is +53
5/5/17; 9:00 AM EST = +70; signal line is +52
5/2/17; 9:36 AM EST = +70; signal line is +52
5/1/17; 9:36 AM EST = +86; signal line is +52

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