Monday, December 8, 2014

STOCK MARKET BULLISH -- LONG -- CAUTION -- TURN MAY BE IMMINIENT

Keybot the Quant remains long but a turn to the short side appears imminent. The algo wants to flip short but the internal programming rules will not yet fully latch to permit the move. Watch VIX 14.43 as the bull-bear line in the sand. Market mayhem will begin as long as the VIX stays above 14.43. If the SPX drops below 2055 and holds below for about five minutes, Keybot will likely flip short and the long rally since October will end. The tension mounts. Bears have it in their grasp if they want it.

12/12/14; 10:00 AM EST =
12/8/14; 2:07 PM EST = +44; signal line is +56 but algorithm remains long
12/7/14; 7:00 PM EST = +58; signal line is +56

Note Added 2:18 PM: Keybot probably wants to see the SPX below 2054.30 and hold that for five minutes to flip short. The VIX must stay above 14.43 to allow the move to the short side which it has so far.

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