Keybot the Quant remains long for the last three weeks as the central banker's talk of quantitative easing continues to support markets. At the opening bell, JJC dropped to 43.87, only 26 points away from the critical 43.61 that Keybot is currently tracking, but the bulls came in to run copper, and the markets higher. A WSJ article written by Jon Hilsensrath, a perceived mounthpiece for the Fed, stick-saved the markets. The volume spikes in the first hour of trading show how long players started jumping back in, obviously knowing that the article was on its way, and then at 11 AM EST-ish, the WSJ article catapulted markets higher. SPX had lost the 1401.50 and price was testing the 1399 support, is was all systems go for market bears, copper was falling, so the Fed had to pump the rumors again to save the day. A Hilsenrath article, always arrives at the most opportune stick-saving times, and typically results in a ten point pop for the S&P's, so Friday was no different.
Utilities were flat all day long and then late day buoyancy pushed UTIL back above 472 confirming the Friday rally and well above the 464 that is now tracked by the algo thru next Friday. JJC 43.61, UTIL 464, SOX 389 and NYA 7808 will all be in play next week, all are bullish, creating market buoyancy, so markets remain elevated if these four parameters remain elevated. Markets will sell off if one or more lose the levels shown. If two of the parameters are lost, Keybot will llikely flip to the short side. Otherwise, and for now, the bulls are driving the bus. More insight can be provided once the Sunday print occurs tomorrow and a projection for the Monday trade can be made.
8/26/12; 7:00 PM EST =
8/24/12; 3:42 PM EST = +76; signal line is +49
8/23/12; 10:52 AM EST = +60; signal line is +48
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