Friday, November 28, 2014


Keybot the Quant remains long as equities float along sideways with an upward bias. Copper, oil and other commodities collapse over the last couple days. The algo is fixated on volatility as the main driver of market direction currently. Watch VIX 14.35. VIX is at 12.07 well below which creates the sideways to sideways up price action in stocks. Bears need VIX above 14.35 to place a lid on the one-month stock market rally. If the VIX moves above 14.35 and the SPX drops under 2067, Keybot will likely flip short.

For the SPX starting at 2073 for the holiday-shortened Friday session (US markets close at 1 PM EST), the bulls only need to see a smidge of green in the S&P futures and an upside acceleration will occur. At this writing about four hours before the opening bell, S&P futures are down -5. The bears need to push under 2067 to accelerate the downside. So the lower futures do not project a rupture of the SPX at 2067 although a test of this level may be on tap. A move through 2068-2073 is sideways action to end the week and month. Today is EOM and November began at 2018 so the bulls are set to log another up month. The Friday after Thanksgiving is typically a low volume up day although over the last decade the day has ended mixed with one-half the days bearish and the other one-half bullish.

11/30/14; 7:00 PM EST EOM =
11/26/14; 10:00 AM EST = +58; signal line is +52
11/25/14; 10:00 AM EST = +57; signal line is +51

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