Monday, January 5, 2015

Keybot the Quant Turns Bearish

Keystone's proprietary algorithm, Keybot the Quant, flips short at SPX 2046 after the opening bell. The NYA failed at the 40-week MA at 10790 which is a dire market signal that a cyclical bear market is on tap going forward. Bulls cannot regain their mojo until the NYA 10790 is regained. At the same time, the algo is tracking financials, XLF 24.27. Watch this level like a hawk, now at 24.30. If XLF 24.27 fails, markets are going to sell off strongly lower.

For more information reference Keybot's site;

Keybot the Quant

Note Added 11:23 AM:  Whoa Nellie. XLF is 24.27...... keep watching ..... bears would need to hold the XLF under 24.27 for several minutes and then the stock market will quickly deteriorate. If the XLF bounces from here and recovers you will see markets recover today. Bulls are battling.... XLF is at 24.28..... the drama continues....... will XLF fail at 24.27 today creating market carnage or will the bulls bounce XLF higher creating a near-term bottom and recovery rally after four days of selling?

Note Added 12:06 PM: Bulls dodge a bullet by preventing the XLF from losing 24.27, for now. The XLF moves up to 24.35 but begins fading again....24.31...... perhaps another test of the critical 24.27 will occur where the stock market's fate will be decided.

Note Added 12:32 PM: XLF just lost 24.27 minutes ago. "Houston, we have a problem." See if the failure remains in place, if so, markets are going to go down hard. Markets will recover only if XLF moves above 24.27. The XLF is at 24.24....... 24.23...... 24.22...... 24.20..... 24.22 ..... bulls are in trouble......

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