Monday, February 15, 2021


Keybot the Quant remains long with the algo number 23 points above the signal line. The bulls are in charge of stock market direction. The SPX prints a new all-time record high at 3937.23 and all-time record closing high at 3934.83.

The quant is tracking utes, volatility, retail stocks and copper. Lower copper will help bears.

The bulls need stronger utilities. Bulls need UTIL above 881.76 and this number is in play all week. US stocks are not trading today due to the Presidents Day holiday. Trading resumes tomorrow morning. UTIL begins at 857.10. On Friday, UTIL lost the 858 palindrome creating the stock market weakness. During the last 65-minute trading block, the Fed saved the day jamming volatility lower sending stocks to the moon for a record finish, otherwise, stocks would have fell apart into the closing bell.

Bears can turn the tables on the bulls with UTIL below 821, VIX above 24.55 and/or RTH below 159. UTIL 821 is extremely important; if it fails, the US stock market may crash. VIX has a 19-handle so bears got some work to do to boost volatility higher. If 1 of the 3 turn bearish, consider the caution flag to be out. If 2 of the 3 turn bearish, consider the imminent turn to the downside to be in play, and if the SPX then falls below 3906 trending lower, Keybot the Quant would likely flip short.

UTIL 882, UTIL 821, VIX 24.55 and RTH 159 are all that matters. You do not even have to watch the stock market. Simply watch these four parameters to determine the path ahead for equities. Keybot prints one pre-scheduled number this week on Thursday morning. The bulls want to rock 'n roll all night, and party every day.

2/21/21; 7:00 PM EST =
2/18/21; 9:00 AM EST =
2/14/21; 7:00 PM EST = +64; signal line is +41
2/12/21; 1:07 PM EST = +64; signal line is +40

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