Sunday, October 5, 2014


Keybot the Quant remains short moving into the new week of trading. The stakes are high when the opening bell rings. The algorithm wants to go long the market so the internal programs will have to latch properly to permit the move. Previously, the importance of the NYA 10629 bull-bear line in the sand is highlighted. The NYA begins at 10635 causing market bullishness. Thus, to try and simplify what may occur after the opening bell, the bulls need to push the SPX above 1971 and maintain this level and higher and Keybot will likely flip to the long side. This is only 3 points of upside and the S&P futures Sunday evening are +3 so high drama may be on tap in the morning. If the NYA drops under 10629, all bets are off for bulls, the bears will claim victory and resume the market selling sending equities lower.

For the SPX starting at 1968, a move above 1971 will create an upside acceleration and place the bulls in the driver's seat going forward. The bears have to retrace Friday's move, a formidable task, so instead bears will focus on pushing the NYA lower with all their might. A move through SPX 1949-1970 is sideways action for Monday. The bears are driving the bus but the bulls have their hooves on the steering wheel as well fighting for control. A turn to the long side may be imminent. Watch the S&P futures to see if the bulls can muster up +4 or more points which would likely be enough to declare victory moving forward. Bears will be pushing all night long to send the S&P futures lower. Keybot does not print any pre-scheduled numbers during this week.

10/12/14; 7:00 PM EST =
10/5/14; 7:00 PM EST = +7; signal line is +6 but algorithm remains short
10/3/14; 1:59 PM EST = +7; signal line is +7 but algorithm remains short

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