Friday, October 3, 2014


Keybot the Quant remains short as an upside rally occurs because of stronger financials and XLF moving above 23.07. Retail stocks explode higher firmly in the bull camp creating market lift. Semiconductors remain committed to the bear camp causing market negativity. When the stock market ran up to the intraday highs a short time ago, that corresponded to the NYA attacking the 10630 bull-bear level the algorithm identifies. Price failed at that level so the bulls could not receive further juice and equities retreat slightly off the highs. Isn't it amazing how Keybot can predict these important numbers mathematically before they occur? Street magician David Blaine looks on in disbelief unable to figure out how the algorithm performs such feats.

So the battle for direction is between financials and the NYA Index. Markets will move higher if the NYA moves above 10630. The NYA is currently printing 10604. Bears will send equities lower if the XLF drops under 23.07. The XLF is at 23.21. So if you are bearish the markets you want lower financials and NYA Index; if bullish you want higher banks and NYA Index.

The SPX upside acceleration move described previously occurs printing a HOD at 1966.90 and currently at 1963.90. Overall, the bears remain in control of the markets despite today's robust rally. The algo number is 18 points below the signal line and the bulls are trying to close this gap as fast as possible.

10/5/14; 7:00 PM EST =
10/3/14; 9:36 AM EST = -7; signal line is +11
10/3/14; 9:00 AM EST = -23; signal line is +14
10/2/14; 1:31 PM EST = -23; signal line is +16

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