STOCK MARKET BULLISH -- LONG

Keybot the Quant flips back to the long side yesterday at SPX 2484. The choppy sideways slop is getting very old. The stock market cannot make up its mind. Volatility drops punching the bears in the face.

Most parameters are on the bullish side with one major exception; banks. Bulls need XLF above 24.59, now at 24.52, only pennies away, and the stock market will rocket launch higher with the SPX on its way to 2500. The S&P 500 printed a new all-time closing high yesterday at 2488.11. The all-time high is 2490.87 from August.

Volatility remains key with the VIX 10.98 as the bull-bear line in the sand. The VIX is at 10.56 as this message is typed Tuesday morning before the opening bell for the regular trading session so the bulls are happy. Higher volatility will stop the stock market rally but will likely not be enough to get the model to flip short. Bears will also need RTH under 80 to gain downside steam.

Banks will tell the story. Bears will fight back if they keep XLF under 24.59. Above 24.59 creates a wild upside stock market party that will be unstoppable. Bears need the VIX above 10.98 and RTH under 80 to restart the stock market downside. 

On the last trade, the algo and actual trading are flat. The benchmark SPX is up +11% this year at the highs for the year. The bulls are unstoppable with the central bankers continuing the never-ending easy money. The world is awash in liquidity and the dough has to go somewhere. Keybot exits DOG and enters IWM.

XLF 24.59 determines if the S&P 500 rallies to 2500, or not. The beat goes on. 

9/17/17; 7:00 PM EST =

9/15/17; 10:00 AM EST =

9/11/17; 11:42 AM EST = +84; signal line is +67; go long 2484; (Benchmark SPX for 2017 = +10.9%)(Keybot algo this trade = -0.1%; Keybot algo for 2017 = +2.1%)(Actual results this trade = +0.0%; Actual results for 2017 = +1.2%)

9/11/17; 11:07 AM EST = +84; signal line is +66 but algorithm remains short

9/11/17; 10:42 AM EST = +70; signal line is +65 but algorithm remains short

9/11/17; 9:37 AM EST = +84; signal line is +65 but algorithm remains short

9/10/17; 7:00 PM EST = +70; signal line is +64 but algorithm remains short

9/6/17; 9:36 AM EST = +70; signal line is +65 but algorithm remains short

9/5/17; 9:36 AM EST = +54; signal line is +65; go short 2469; (Benchmark SPX for 2017 = +10.3%)(Keybot algo this trade = +0.7%; Keybot algo for 2017 = +2.2%)(Actual results this trade = +0.2%; Actual results for 2017 = +1.2%)