Keybot the Quant remains short as the sideways circus continues. The algo did not print any numbers in the Thursday session. A pre-scheduled number prints this morning at 10 AM. Keybot appears most interested in volatility and financials. Bulls need VIX under 14.39 to launch equities higher. Bears need XLF under 21.76 to lock-in a strong downside market move. If VIX stays above 14.39, and XLF stays above 21.76, equities will float along sideways into the weekend.
For the SPX starting at 1849, only one single point higher for the year, and 10 points lower for the month of March thus far, the bulls need to push up through 1855.50, about 6 or 7 points higher, and an upside acceleration will occur into the 1860's. S&P futures are +6. The bears need to push under 1842 to accelerate the downside. A move through 1843-1855 is sideways action into the weekend. March ends Monday; EOM. Markets remain unstable.
An interesting development is occurring where even if the VIX turns bullish today dropping under 14.39, it will likely not be sufficient enough to cause Keybot to flip long. Bulls will likely need stronger retail (RTH 59.60) and/or stronger copper (JJC 37.85), in addition to lower volatility, to lock-in a sustainable upside rally. Thus, the imminent turn status is not displayed. If RTH moves above 59.60 today, the bulls mean serious business and plan to flip the algo long.
An interesting development is occurring where even if the VIX turns bullish today dropping under 14.39, it will likely not be sufficient enough to cause Keybot to flip long. Bulls will likely need stronger retail (RTH 59.60) and/or stronger copper (JJC 37.85), in addition to lower volatility, to lock-in a sustainable upside rally. Thus, the imminent turn status is not displayed. If RTH moves above 59.60 today, the bulls mean serious business and plan to flip the algo long.
3/30/14;
7:00 PM EST =
3/28/14;
10:00 AM EST =
3/26/14; 3:16 PM EST
= +33; signal line is +50
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