Sunday, July 30, 2017


Keybot the Quant remains bullish with the stock indexes at record highs. For the new week of trading, the bears need to push the VIX above 11.33 or they got nothing. If VIX remains under 11.33, the bulls will keep floating the stock market higher.

The bears likely need at least one other parameter to flip bearish in addition to volatility to get the model to flip to the short side. The algo is tracking the XLF 24.41 level and the RTH 80.75 level. A breach of either level will create a strong leg lower for stocks and set Keybot up for a move to the short side. So bears need weaker banks and retail stocks.

For now, the bulls rule. Watch VIX 11.33. Keybot prints the EOM number on Monday evening and also a pre-scheduled number on Friday morning before the opening bell. The bulls remain in firm control with the algo number 29 points above the signal line.

8/6/17; 7:00 PM EST =
8/4/17; 9:00 AM EST =
7/31/17; 7:00 PM EST EOM =
7/30/17; 7:00 PM EST = +99; signal line is +70
7/28/17; 10:00 AM EST = +99; signal line is +68

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