Wednesday, November 16, 2016


Keybot the Quant remains long. You saw volatility drop and retail stocks pop as per the previous levels listed so you knew the bulls would win the day yesterday. The bulls are in charge with the algo number comfortably above the signal line by 25 points.

The bulls need GTX above 2250 and/or UTIL above 651 to create more stock market upside. Both of these tasks currently appear difficult but the Trump Rally keeps pumping stocks higher. The bears need the VIX to move above 13.89 (currently trading at 13.68) and/or RTH under 76.53 (now at 76.69). Either parameter will create market weakness. If both volatility and retail stocks turn bearish, and the SPX drops under 2166, Keybot may flip short.

The SPX begins Wednesday at 2180. The bulls need to touch the 2181 handle, only one point higher, and bingo, the upside will accelerate several quick handles. The bears need to push below 2166 to regain their mojo. S&P futures are down 2 points four hours before Wednesday's opening bell for the regular session. A move through 2167-2180 is sideways action for the SPX on Wednesday.

11/20/16; 7:00 PM EST =
11/17/16; 9:00 AM EST =
11/15/16; 1:17 PM EST = +48; signal line is +23
11/15/16; 12:37 PM EST = +32; signal line is +22
11/15/16; 11:01 AM EST = +48; signal line is +21
11/15/16; 10:16 AM EST = +34; signal line is +19
11/14/16; 2:25 PM EST = +18; signal line is +18 but algorithm remains long

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