Wednesday, December 14, 2016


Keybot the Quant remains long and prints two numbers thus far this week. The bulls are in charge with the algo number 8 points above the signal line. The knock-down drag-out fight between bulls and bears continues using utilities and volatility as weapons. Note the drama with UTIL in the 655-657 area Keybot called out ahead of time. The market bulls need UTIL above 657 it is now at 645.

The market bears need volatility, the VIX, to move above 13.95 it is now at 13.19. One of these two parameters will flinch and dictate the path ahead for the stock market. The utes ran higher but then fell on their sword. Perhaps it is volatility's turn for a run higher?

If VIX moves  above 13.95, and the SPX drops under 2248, Keybot will likely flip short. If VIX moves higher towards 14, consider the imminent turn to the downside to be in play for the algorithm.

For the SPX starting at 2253 on Thursday morning, the bulls need to push above 2276 to accelerate the upside. The bears need to push under 2248 to accelerate the downside. A move through 2249-2275 is sideways action. Utilities and volatility are the two market parameters most greatly impacting stock market direction currently.

12/18/16; 7:00 PM EST =
12/16/16; 9:00 AM EST =
12/14/16; 2:07 PM EST = +68; signal line is +60
12/13/16; 2:20 PM EST = +84; signal line is +60
12/11/16; 7:00 PM EST = +68; signal line is +59

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