Sunday, June 12, 2016


Keybot the Quant is long to begin the new week of trading. Market bulls win big if the VIX drops under 16.58 (now at 17.03). Market bears win big if XLF drops under 23.11 (now at 23.16). Thus, bulls need lower volatility to stop the market selling while bears need lower financials to accelerate the stock market move lower.

If XLF drops under 23.11, and the SPX falls under 2090, Keybot will likely flip short. Hence, the imminent turn notation is in the title line. If the VIX drops under 16.58, however, the imminent turn would no longer be applicable.

For the SPX starting at 2096, the bulls need to gain 14 points to touch the 2110 handle and bingo, stocks will accelerate higher. The bears need to push under 2090 to accelerate the downside quickly into the low to mid 2080's a critical support area. A move through 2091-2109 is sideways action to begin the week.

Keybot prints one pre-scheduled number this week on Friday morning. The bulls are in charge with the algo number 3 points above the signal line but the bears have it on a silver platter if they want it. Watch volatility and the banks.

6/19/16; 7:00 PM EST =
6/17/16; 9:00 AM EST =
6/12/16; 7:00 PM EST = +66; signal line is +63
6/10/16; 1:57 PM EST = +66; signal line is +63

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