Friday, January 15, 2021


Keybot the Quant remains long and the algo is quiet as the week moves along. The bulls are in charge of stock market direction but the algo number is only 6 points above the signal line. Volatility and utes continue running the show.

Bears need VIX above 25.16 and/or UTIL below 832.49. VIX is trading at 23.66 right now, 5-1/2 hours before the opening bell in the US so the bears need another buck-fifty, or buck-fitty for the younger crowd.

UTIL begins the Friday session at 851. The UTIL 832.49 number may be a lot to ask of the bears today but for next week (Monday trading is closed for Martin Luther King Day), 875.81 is the key level and the 832.49 is meaningless. Thus, by 4 PM EST today, UTIL must be above 876, otherwise, the stock market will be soft next week. If UTIL 832.49 fails today, stocks will fall apart and if the 825 fails, stocks may go into free fall. For next week, if UTIL is below 876, the stock market will be weak, and if 825 fails, stocks may to into free fall.

If VIX pops above 25.16 and the SPX slips below 3793 trending lower, Keybot the Quant will likely flip short, hence the imminent turn notation is in the title line. The SPX begins at 3796 so the bears have it on a silver platter if they want it. Bears must pull the Federal Reserve's jackboots off the throat of volatility and let it explode higher if they want to growl and create mayhem. S&P futures are off -15. Keybot prints a pre-scheduled number at 10 AM EST. The beat goes on.

1/17/21; 7:00 PM EST =
1/15/21; 10:00 AM EST =
1/12/21; 1:17 PM EST = +67; signal line is +61
1/12/21; 12:56 PM EST = +51; signal line is +61 but algorithm remains long

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