Sunday, May 15, 2016


Keybot the Quant remains short moving into the new week of trading. The market bulls keep XLF above 22.74 so stocks did not flush lower late Friday. This drama continues for Monday. As financials go, so go the markets. Bears need XLF under 22.74 (now at 22.88) to create market carnage. If XLF stays above 22.74, the bears got nothing and stocks will float along sideways to sideways higher. The bulls need to boost the banks, chips and retail stocks to stop the downward slide in stocks so watch XLF, SOX and RTH.

For the SPX beginning the week at 2047, the bulls need to touch the 2067 handle to create an upside acceleration well into the 2070's. The bears need to push under 2043 to accelerate the downside. If XLF drops under 22.74 and the SPX loses 2043, the SPX may dump from 15 to 30 handles. A move through 2044-2066 is sideways action to begin the week.

Keybot prints one pre-scheduled number this week on Tuesday morning before the bell. The bears are in control with the algo number 21 points under the signal line but the stock market remains a crap shoot. Watch the banks. XLF 22.74 will dictate broad stock market direction.

5/22/16; 7:00 PM EST =
5/17/16; 9:00 AM EST =
5/15/16; 7:00 PM EST = +47; signal line is +68
5/13/16; 10:00 AM EST = +47; signal line is +69

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