Keybot the Quant remains long. The printout below shows how the algorithm has not printed any random numbers all week long; the only two numbers that printed were the pre-scheduled numbers on Tuesday and Wednesday. This indicates an algorithm simply motoring along on the long side without any bearish pressure occurring at all.
The bulls are cruising especially after VIX collapsed after yesterday's open, collapsing down thru the 20-day MA, then under 18, and then closing at the lows of the day at 17.26. This indicates the lack of fear by traders and how they simply expect markets to continue upwards without a care. Continue watching the VIX since a rocket spike higher can occur anytime.
Watch the dollar and commodities. The CRB is at 324 and has printed a 319 handle over the last couple days. If the CRB 313 level fails, this will enable bears to bring negativity to the markets. Commodities move down when the dollar moves up.
For the SPX today, starting at 1374, the market bulls need to move up and over the 1376 handle, if that occurs, the bulls will be running higher into the weekend. The 1377-1378 overhead resistance is very important. If the SPX moves above this zone, the uber bullish strength will carry markets another leg higher. The market bears need to push the SPX down to lose the 1366 handle. If you see 1365 numbers start to print, the broad markets will accelerate lower into the weekend. A move thru 1367-1375 is sideways action. Futures currently indicate a slightly down open.
Perhaps Keybot will explode to life today printing numbers, but, considering the calmness all week so far, the algorithm may simply idle along into the weekend maintaining a bullish posture. Stay on guard, markets remain highly unstable, expect the unexpected.
3/4/12; 7:00 PM EST =
2/29/12; 7:00 PM EST EOM = +76; signal line is +65
2/28/12; 10:00 AM = +76; signal line is +64
2/26/12; 7:00 PM EST = +76; signal line is +63
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