Keybot the Quant Turns Bullish

Keystone's proprietary trading robot, Keybot the Quant, whipsaws back to the long side at SPX 3978 late yesterday. Don't hold your breath since another flip will likely occur back to the downside at any time forward. The chop suey continues chopping-up bulls and bears alike.

Bulls need XLF above 35.69 to prove that the rally is real. Bears need SPX below 3962 to introduce market negativity. XLF is at 35.68.....a minute ago it tagged 35.70. This is the second test of the critical 35.69 resistance this morning and will tell you a lot. A rejection at XLF 35.69 likely means the rally will fall apart. XLF above 35.69 will ignite more stock market upside. The SPX is at 4017 at the highs of the day as the banks make their critical bounce or die decision.

Keybot the Quant

Note Added 10:33 AM EST: XLF is at 35.67....... now 35.68... another test of resistance in progress that dictates where the stock market is going. The banks matter.

Note Added 10:34 AM EST: Whoopsies daisies. XLF is at 35.64. The drama continues....

Note Added 11:16 AM EST: The bulls cheer. XLF pops to 35.71. 

Note Added 11:22 AM EST: The bears cheer. XLF is at 35.69. This game will likely continue for a while. The SPX is stalled at 4015-ish waiting to see what the banks decide.

Note Added 11:31 AM EST: The bulls cheer. XLF pops to 35.73 so a bullish orgy rally is expected. SPX is at the HOD at 4018 of course boosted by the  bank orgy but will the XLF 35.69 support hold today? Will it hold for more than 10 minutes? The banksters are puffing-out their chests and tipping their tophats to the adoring shareholders.

Note Added 12:42 PM EST: XLF 35.81. It's a bull orgy party. SPX 4025.