Thursday, December 20, 2012


Keybot the Quant is long going into the Thursday session. The algo wants to flip to the short side (the algo number is under the signal line) but is held back until all the proper parameters fall into place. For Thursday, watch JJC 45.46 (copper). Price sits just below which creates market negativity. The bears want JJC to continue dropping. The bulls need JJC to move back above 45.46 asap.  Copper is currently down in trading heading for another weak day but the U.S. opening bell remains six hours away. The quant also continues to track VIX 15.88 and UTIL 456.78 which are currently contributing bearishly to markets.

For the SPX, starting at 1436, the bulls need to touch 1448 to ignite an upside acceleration. The bears have an easier road ahead, only needing to see red futures overnight (the S&P's are down 3 as this is typed), and a downward acceleration will occur at the open. A move thru 1437-1447 is sideways action today. If the SPX drops under 1436 at the opening bell and remains under for several minutes, it is highly likely that Keybot will flip to the short side. A turn to the short side appears imminent. Markets remain unstable, extreme caution is warranted.

12/23/12; 7:00 PM EST =
12/21/12; 10:00 AM EST =
12/19/12; 11:54 AM EST = +1; signal line is +14 but algorithm says stay long
12/19/12; 11:34 AM EST = +17; signal line is +15

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