Wednesday, March 12, 2014

STOCK MARKET BEARISH -- SHORT -- CAUTION -- TURN MAY BE IMMINENT

Keybot the Quant remains short as market indecision continues. The bears started to push lower with the VIX up over 15 but then the bulls fight back and bring equities back to the flat line pushing volatility lower. The algo has not printed a number this week; not for three days. The battle is at VIX 14.02. VIX is causing market negativity at 14.47 right now. The bulls will send markets higher if VIX drops under 14. Bears will increase the equity selling if VIX moves higher.

For the SPX on Thursday beginning at 1868, the bulls have an easy road, only needing to see a tiny smidge of green in the overnight S&P futures and this will set up a several handle upside launch well into the 1870's. The bears need to push below 1854 to accelerate the downside. A move through 1855-1867 is sideways action. The imminent turn notation is added to the title line. If the VIX drops under 14.02, and the SPX prints above 1868, and both remain bullish, Keybot will likely flip to the long side. Markets remain a coin-flip. VIX 14.02 tells the story.

3/14/14; 10:00 AM EST =
3/9/14; 7:00 PM EST = +48; signal line is +51

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