Thursday, May 19, 2016


Keybot the Qaunt remains short as the market roller coaster ride continues. Semiconductors failed after the opening bell so you knew down was the direction for stocks. The algo prints three numbers today and the bears remain in control with the algo number 10 points under the signal line.

Friday is a fight between semi's and the financials/SPX. The bulls need SOX above 649.27 or they got nothing. The bears need XLF under 22.79 and/or SPX under 2025 to create market mayhem. If SOX remains bearish and XLF bullish, and the SPX above 2025, stocks will stagger sideways with an upward bias into the weekend. If SOX moves above 649.27 and the SPX moves above 2044, Keybot will likely flip long so consider an imminent turn in play if the chips rally.

For the SPX starting Friday at 2040, the bulls need to push 4 points higher, above 2044, and the upside will accelerate. The bears need to push under 2026 to accelerate the downside. The SPX 2025-2026 level takes on extreme importance for Friday; if this level fails, there will likely be serious market carnage ahead. The beat goes on.

5/22/16; 7:00 PM EST =
5/19/16; 9:52 AM EST = +47; signal line is +57
5/19/16; 9:44 AM EST = +63; signal line is +58 but algorithm remains short
5/19/16; 9:36 AM EST = +47; signal line is +58
5/18/16; 3:59 PM EST = +63; signal line is +60 but algorithm remains short

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