Thursday, September 29, 2011

Keybot the Quant Turns Bearish

Keybot, Keystone's proprietary trading algorithm, turned bearish at 2:10 PM at SPX 1146. The retail sector failed today but anyone reading this mornings missive was watching RTH closely and saw this happen in real time after 1:30 PM today, knowing this was a signal for weakness in the indexes. RTH is now at 102.64 last print. As long as RTH stays under 103.70, a number continuously calculated by Keybot the Quant, the weak broad markets will continue.

The utilities are the only major sector that is now bullish, as measured by the quant. Watch UTIL, now at 434.75. If the 426.79 level fails, the broad markets will be in serious trouble, if the utes can maintain their buoyancy above 426.79, then the downside selling will be minimized. As always when a turn occurs, watch for a potential whipsaw.

More information at Keybot the Quant's site:

http://www.keybotthequant.blogspot.com

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