Thursday, March 13, 2014

STOCK MARKET BEARISH -- SHORT -- CAUTION

Keybot the Quant remains short as volatility catapulted higher today. The algo has not printed a number at all this week. A pre-scheduled number prints tomorrow one-half hour after the opening bell. VIX 14.10 is the bull-bear line in the sand. Bulls need to send VIX under 14.10 to stop the selling. Bears can receive additional fuel with either GTX 4855, RTH 59.35 and/or XLF 21.60. If VIX remains bearish and commodities, retail and financials remain bullish, respectively, then equities will float sideways into the weekend.

For the SPX starting at 1846, the bulls need to retrace the large sell off and regain 1874 which is probably not likely. The bears need to push under 1842 to accelerate the downside quickly into the 1830's. A move through 1843-1873 is sideways action. The imminent turn notation is removed since bulls would need the SPX to run above 1874 but if the VIX drops under 14.10, consider the imminent turn back on the table. If either GTX, RTH or XLF turn bearish as described above, any one of the three is all that is needed, this locks-in more sustainable and extended market downside going forward.

3/16/14; 7:00 PM EST =
3/14/14; 10:00 AM EST =
3/9/14; 7:00 PM EST = +48; signal line is +51

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