Tuesday, March 18, 2014

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

Keybot the Quant remains short as volatility collapses lower under 15 and down to and through the VIX 14.27 bull-bear line in the sand. The VIX recovered and is now pennies above 14.27 on the bear side. The imminent turn status is in play since the VIX is teasing 14.27. If the VIX drops under 14.27, and the SPX prints above 1872, and both remain bullish, Keybot will likely flip long. Market bears need to hold the line at VIX 14.27, otherwise they will fold like a cheap suit. The SPX ran up through 1868 resistance, now support, then to the strong 1874 resistance which held so far and price now bounces sideways in between. If VIX drops under 14.27, the SPX will punch up through 1874 like it is not even there. The broad market direction hinges on VIX 14.27.

3/23/14; 7:00 PM EST =
3/18/14; 11:49 AM EST = +48; signal line is +51
3/18/14; 11:31 AM EST = +62; signal line is +51 but algorithm remains short
3/18/14; 9:00 AM EST = +48; signal line is +51
3/16/14; 7:00 PM EST = +48; signal line is +51

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