Keybot the Quant remains long and does not print any numbers this week thus far except for the pre-scheduled number. The bulls remain in control of stock market direction although the algo number is only 4 measly points above the signal line.
Volatility is the key metric steering the market ship. VIX 27.24 is the bull-bear line in the sand. VIX is trading at the 30.03 palindrome, in the bear camp; a 30-handle. The stock market will only go up if the VIX drops below 27.24. If the VIX remains above 27.24, the bears will win going forward. A move above 30.58 will flush the stock market lower.
Two key parameters to watch are banks and commodities. Bears need XLF below 24.55 (now at 24.68) and GTX below 1730 (now at 1759). If either one turns bearish, and the SPX drops below 3433 trending lower, Keybot the Quant will likely flip short. S&P futures are down -23 slipping away this morning as are European stock indexes. Watch the banks.
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