Thursday, September 11, 2014


Keybot the Quant remains short motoring along through the week without printing any numbers since Monday. VIX 12.35 remains the key market driver currently. VIX is above at 12.80 creating market negativity. Bulls need VIX under 12.35 and the upside orgy for equities will begin again. If the VIX drops under 12.35 and the SPX prints above 1998 and higher, Keybot will likely flip long so the imminent turn notation is in the title line. The bears need to send volatility higher immediately at the opening bell for Friday as well as send financials, semiconductor and retail stocks lower. The positivity or negativity in these three sectors will tell a lot about the path ahead.

For Friday with the SPX starting at 1997, the bulls need to touch the 1998 handle and bingo, a quick upside acceleration will occur sending price easily above 2000 to the 2002-2003 resistance. Therefore, watch the S&P futures overnight since any smidge of green will place the bulls in a festive party mood going into the weekend. The bears must push under 1986 to accelerate the downside a difficult task so the bears will instead focus on pushing volatility higher and financials, semi's and retail stocks lower. A move through 1987-1997 is sideways action. The bulls are in position to retake control; all they need is lower volatility to light the way. The bears need some bad news overnight to set a sour mood for Friday. Keybot prints a pre-scheduled number at 10 AM tomorrow.

9/12/14; 10:00 AM EST =
9/8/14; 11:57 AM EST = +40; signal line is +53

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