Sunday, October 12, 2014


Keybot the Quant is bearish moving into the new week of trading. Watch UTIL 554.27 as an important bull-bear line in the sand for every day this week. This will provide bulls with strength as Monday begins. The retail sector remains key. Watch RTH 62.13 as the line in the sand. Bulls have RTH at 62.45 comfortably in the bull camp creating broad market lift. Another key level the algo is tracking is SPX 1895 which would create bearish mayhem in markets if it fails.

For the SPX starting at 1906, closing at the lows on Friday, the bears only need a smidge of red in the futures and price will accelerate lower to 1900 and set its sights on a test of the critical 1895-ish mentioned above. So keep an eye on the overnight S&P futures. The broad market may crash and go into free-fall if the 1895 fails, however, check UTIL 554.27 since markets would not accelerate lower without the utes failing. The bulls need to push higher and overcome the 1936-1937 resistance level to signal the all-clear for a sustainable upside recovery rally, a formidable task. Instead, bulls will focus on moving utes and retail stocks higher which will stop the SPX from falling. A move through 1906-1935 is sideways action.

Since utlities remains elevated, the algo number will likely move above the signal line after Monday's opening bell, however, barring a huge upside rally, Keybot willl likely not flip long unless the SPX price overtakes the 1936-1937 level. Keybot prints two pre-scheduled numbers this week both on Friday morning. Will the roller coaster ride continue? UTIL 554.27, RTH 62.13 and SPX 1895 will tell you the answer.

10/19/14; 7:00 PM EST =
10/17/14; 10:00 AM EST =
10/17/14; 9:00 AM EST =
10/12/14; 7:00 PM EST = -23; signal line is -12
10/9/14; 11:54 AM EST = -23; signal line is -11; go short 1943; (Benchmark SPX for 2014 = +5.1%)(Keybot this trade = -1.0%; Keybot for 2014 = +6.7%)(Actual this trade = -0.9%; Actual for 2014 = +7.4%)

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