Tuesday, March 11, 2014

STOCK MARKET BEARISH -- SHORT -- CAUTION

Keybot the Quant remains short. The algo did not print any numbers for the Tuesday session and volatility remains the key; VIX 14. VIX remains above 14 so this creates equity weakness. The bulls need to push VIX under 14 or they got nothing. Bears need to start pushing volatility far higher, above 15, to increase market negativity.

For the SPX starting at 1868, the bulls need to push above 1882 to create an upside acceleration to 1890 in quick order. The bears need to push under 1864 to accelerate the downside. A move through 1865-1881 is sideways action. If the VIX drops under 14 and the SPX moves above 1882, and both remain bullish, the algo will likely flip long. Since this goal for bulls is about 14 SPX handles higher, a formidable task but not impossible, the imminent turn notation is removed, for now. If VIX drops under 14, consider the imminent turn notation to be in affect again since the algo will be positioning for a move to the long side.

The bears are starting to push markets lower since they are keeping the VIX elevated. The higher the VIX goes, the lower the market goes. The Wednesday session is critical to see if the upward move in volatility continues, or not.

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

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