Keybot the Quant remains bullish as the holiday-shortened trading week begins in the United States. The bulls are comfortable with the algo number 19 points above the signal line but the caution flag remains out since the stock market remains erratic and unstable.
Market bulls need higher retail stocks, RTH above 79.95, and the upside party will turn into a full-fledged orgy of higher stock prices. Market bears remain in the game if they prevent RTH 79.95 from occurring.
The bears need weaker financials, XLF under 24.67, and higher volatility, VIX above 11.12 and likely need both parameters to turn bearish for the algo to flip short. The imminent turn would be in play if one of the two turn bearish. Stocks should stumble sideways with a slight upward bias if RTH remains bearish and XLF and VIX bullish.
One thing that may occur is the banks may jog above and below the 24.67 line in the sand several times over the coming hours or day or two. If you see this behavior occurring it will likely lead to a failure lower in the stock market. Keybot does not print any pre-scheduled numbers this week. The beat goes on.
9/10/17;
7:00 PM EST =
9/3/17; 7:00 PM EST =
+84; signal line is +65
9/1/17;
10:00 AM EST = +84; signal line is +64
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