Wednesday, September 2, 2020


Keybot the Quant remains long but continues champing at the bit to go short. The SPX is in melt-up mode printing a new all-time record high at 3588.11 and new all-time closing high at 3580.84. It is wild price activity. These are historic times.

If the SPX drops below 3535, Keybot the Quant will likely flip short. The S&P 500 will begin the Thursday session at 3581 so the bears have their work cut out for them.

The bulls goosed utilities bigtime today. The bulls know they must keep UTIL above 807 next week so they pumped it above 822 and UTIL closed at the 818 palindrome. This bullishness in utes is very helpful to the bull case for stocks going forward. Bulls need UTIL above 834 to keep the stock market elevated for weeks to come.

The bears need higher volatility and were pushing hard all day. You will never see the SPX up over +60 points while at the same time the VIX is strongly higher at one point above 27. That never happens so there is a disconnect that will be resolved going forward. VIX is at 26.57. Bears need VIX above the 28.03-28.35 area to prove that they can stop the stock market rally and create strong selling pressure.

Bulls need higher utilities and to definitely keep UTIL above 807 into next week. Bears need VIX above 28.35 and GTX below 1726 (lower commodities) to create stock market selling pressure.

9/6/20; 7:00 PM EST =
9/4/20; 9:00 AM EST =
8/31/20; 7:00 PM EST EOM = +50; signal line is +51 but algorithm remains long

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