Sunday, September 28, 2014


Keybot the Quant is short moving into the new week of trading. The bulls and bears are fighting it out sideways as the algo number is above the signal line wanting to go long but the internal parameters will not yet allow the move. In general, if the SPX moves above 1986 and remains above, Keybot will likely flip long. However, if the algo number slips back under the signal line, which it probably will since UTIL will be under the critical 566.46 number that is important for the entire week, then the bears will remain in control.

Watch UTIL 566.46 and lower which will create market negativity. Watch VIX 12.38. VIX begins the week at 14.85 in the bear camp causing negativity. So utilities and volatility are important to begin the new week. Keybot is also showing interest in financials and tracking XLF 23.03. XLF begins at 23.29 in the bull camp causing market upside. The Hong Kong protests may create negativity in banks overnight.

For the SPX starting at 1983, the bulls need to push above 1986, only three points higher, to accelerate the upside to 1991 and Keybot will likely flip long. The bears need to push under 1966 retracing the Friday move to regain their mojo. This is a formidable task so instead bears will focus on keeping utes weak and volatility high. A move through 1967-1985 is sideways action for Monday. S&P futures are negative on Sunday evening. The bears are driving the bus. Keybot prints three pre-scheduled numbers this week. The EOM is Tuesday. The expectation is for the algo number (+43) to probably drop under the signal line (+38) shortly after trading begins but anything is game in these markets

10/5/14; 7:00 PM EST =
10/3/14; 9:00 AM EST =
9/30/14; 7:00 PM EST EOM =
9/30/14; 10:00 AM EST =
9/28/14; 7:00 PM EST = +43; signal line is +38 but algorithm remains short
9/26/14; 10:00 AM EST = +43; signal line is +38 but algorithm remains short

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