Keybot the Quant remains long moving into the Friday session. Yesterday was a sideways session where bears were pressing equities lower but could not push VIX above 16.60, so they had nothing, and then the bulls pushing stocks higher but they could not push UTIL above 603, so they had nothing.
Bulls need UTIL above 603 to confirm a strong upside path for stocks ahead. Stronger copper and commodities will also help bulls. Bears need either VIX above 16.60 or XLF under 24.01 to create market negativity. If utes remain in the bear camp, and volatility and the financials in the bull camp, equities will float sideways with a slight upward bias into the weekend.
For the SPX starting at 2097, the bulls need to push above 2102 and bingo, the upside will run several handles more targeting 2108-2110. The bears need to push under 2091 to accelerate the downside. A move through 2092-2101 is sideways action to end the week. The caution flag is out. If either volatility or financials turn bearish as described above, and the SPX drops under 2091, Keybot will likely flip to the short side.
2/22/15;
7:00 PM EST =
2/19/15; 12:22 PM EST
= +54; signal line is +50
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