Sunday, July 3, 2016


Keybot the Quant is long moving into the new week of trading which does not begin until Tuesday morning in the States. The +98 readings cannot be understated. The  markets are at strongly overbot levels perhaps epic levels. Time will tell. The bulls need XLF above 22.77 and bingo, the upside in the stock market will continue exploding higher. The bears need to keep XLF under 22.77 with all their might, if so, the move higher in stocks will stall and end.

If the market bears can stop the upside in stocks with lower financials, they can gain downside momentum in the stock market if the VIX moves above 16.15. If the VIX remains below 16.15, the bears got nothing; the bulls will swat the bears around like a cat slapping around an unfortunate mouse.

For the SPX on Tuesday, starting at 2103, the bulls need to touch the 2109 handle and the upside will accelerate as the banks rally higher. The bears need to push below 2098 to accelerate the downside. A move through 2099-2108 is sideways action for Tuesday.

Keybot prints one pre-scheduled number this week on Friday morning before the bell. The bulls are in charge. The algorithm is at very lofty levels indicating that something special may be occurring in markets currently. Watch XLF 22.77. As financials go, so go the markets.

7/10/16; 7:00 PM EST =
7/8/16; 9:00 AM EST =
7/3/16; 7:00 PM EST = +82; signal line is +56
7/1/16; 12:22 PM EST = +82; signal line is +55

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