Keybot the Quant, a trading algorithm, flipped back to the short side today at lunch time, 12:16 PM EST, at SPX 1342. The VIX remains low, however, now at 17.31, so watch that for the remainder of the day. If VIX moves above 17.67, the selling pressure will increase substantially. If the VIX cannot get above 17.67, then sideways with some buoyancy would be expected into the close. Semiconductors broke down today.
Keybot the Quant Comments:
The algorithm whipsawed today at noon time. Keybot the Quant went back to the short side. The semiconductors rolled over despite the positive INTC news. Thus, semi's, financials, copper and commodities in general are all bearish. Utilities, retail and low volatility remain bullish.
The SPX fell thru the LOD yesterday at 1348.34 which opened the flood gates downward. Volatilty, VIX is at 17.31, 36 cents below the 17.67 level which would indicate bearishness.
Stay on guard for a whipsaw again. The algorithm is only 9 points under the signal line. Markets remain unstable driving the robots crazy. NYA volume is light when typically for down days it should be heavier. Keybot has dropped into regular ETF mode due to the whipsaw. This reduces risk for these indecisive markets until they settle in one direction or the other.
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