Sunday, December 11, 2016


Keybot the Quant is long heading into the new week of trading. The algo number is 9 points above the signal line with the bulls in charge. Bulls need higher utilities, UTIL above 655.34 (now at 645.86) to prove that stocks will continue to rally and the SPX will move above 2300. Over the next two weeks, the UTIL 655-656 level is extremely important so do not be surprised if price plays around at these levels. Above here proves that the bulls are going to keep stocks higher into early next year. If UTIL cannot move above 655 and leaks lower, the broad stock market will likely roll over to the downside.

The market bears are slapped in the face each day with low volatility. Slap, slap. Bears need VIX above 13.90 (now at 11.75) to prove they can push stocks lower. If VIX moves above 13.90, and the SPX drops under 2249, Keybot will likely flip short, hence the caution sign is out. The imminent market turn to the downside will be in play if the VIX moves above 13.90.

Bulls win with UTIL above 655. Bears win with VIX above 13.90. Status quo with these two parameters will send stocks sideways with a slight upward bias. One of these two parameters will flinch, perhaps early in the week, indicating market direction.

For the SPX starting at 2260 on Monday morning the highest closing level in history, the bulls need any smidge of green in the S&P futures overnight and the SPX will be accelerating higher after the opening bell. The bears need to push the SPX below 2249 to accelerate the downside. A move through 2250-2259 is sideways action to begin the week. Keybot prints one pre-scheduled number this week on Friday morning. 

12/18/16; 7:00 PM EST =
12/16/16; 9:00 AM EST =
12/11/16; 7:00 PM EST = +68; signal line is +59
12/9/16; 10:00 AM EST = +68; signal line is +59

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