Sunday, May 1, 2016


Keybot the Quant remains long after an active Friday session that printed 7 numbers. Chips collapsed at the opening bell last Friday but retail stocks soared higher. The algo was itching to go short two different times but the internal programming rules would not completely latch to permit the flip to the short side. The imminent turn notation remains and the battle between chips and retail stocks continues.

Bears need RTH under 75.88 to create a leg lower in stocks. If RTH fails and the SPX moves under 2052, Keybot will likely flip short. The bulls need to move semiconductors higher to create buoyancy in stocks and if SOX regains the 658 level the bulls will be celebrating by moving the stock market higher. If RTH remains above 75.88 and SOX below 658, the stock market will stumble along sideways with an upward bias.

For the SPX starting at 2065, the bulls need to touch the 2074 handle and bingo, stocks will accelerate higher into the 2080's. The bears need to push under 2052 to accelerate the downside. A move through 2053-2073 is sideways action to begin the week. Keybot prints one pre-scheduled number this week on Friday morning. The bulls are in charge but the bears are trying to make a move. The algo number is only 5 points above the signal line. Semiconductors and retail stocks will dictate stock market direction.

5/8/16; 7:00 PM EST =
5/6/16; 9:00 AM EST =
5/1/16; 7:00 PM EST EOM = +76; signal line is +71
4/29/16; 3:21 PM EST = +76; signal line is +70
4/29/16; 1:45 PM EST = +60; signal line is +70 but algorithm remains long
4/29/16; 12:53 PM EST = +76; signal line is +69
4/29/16; 11:41 AM EST = +60; signal line is +68 but algorithm remains long
4/29/16; 10:00 AM EST = +76; signal line is +68
4/29/16; 9:37 AM EST = +77; signal line is +67
4/29/16; 9:36 AM EST = +93; signal line is +66
4/28/16; 3:29 PM EST = +77; signal line is +65

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