The Keystone Speculator's proprietary trading algorithm, Keybot the Quant, flips to the short side today at SPX 3644. Equities rally intraday as Congress prepares to vote on the stimulus bill. Volatility jumps causing the selloff this morning but the VIX is now down to 24.66. Bears need VIX above 25.32 which will kick the strong selling back into gear. Bulls are in good shape as long as the VIX remains below 25.32 and that will set up conditions for Keybot to probably whipsaw back to the long side. Watch volatility like a hawk. If VIX moves above 25.32, stocks may collapse rapidly.
Note Added 3:09 PM EST: VIX is up to 24.85 this was the high an hour ago so it is a critical juncture. If VIX moves higher it will test 25.32 for all the marbles. Bears must spank the VIX back down. Bloop. It move up through to 24.96. See if it can do the 25-handle.
Note Added 3:11 PM EST: VIX is at 25.00 but bears still need another 32 pennies. VIX 25.02...... 25.03 .....
Note Added 3:19 PM EST: VIX is at 25.10 but bears still need another 22 pennies. VIX 25.14...... 25.17 ..... come on bears, whatcha got?
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