Keybot the Quant remains long. The EOM pre-scheduled print results in a one tick move higher for the signal line now closing the gap to 7 points from the algo number. The bears were pushing this morning with the GTX 4785 failure but the bulls quickly recovered. How does Keybot know these key numbers and areas of interest ahead of time? The algo is tracking several items but the current status can be boiled down to copper versus volatility, much like things were a week or so ago. Bulls will win with higher copper. Copper made a big move higher today. Bears will win with higher volatility. Watch JJC 38.95 and VIX 14.26, respectively. JJC is 38.31 only 64 cents away from handing the bulls a victory to SPX 1700+. VIX is 13.45 slapped around on a daily basis, kept lower to enable the broad indexes to remain buoyant. If VIX prints above 14.26, that will confirm the downside ahead for equities and Keybot will likely flip short.
For the SPX for Thursday, starting at 1686, the bulls need to move above 1698 to launch an upside acceleration above 1700+ in a heartbeat. The bears need to push under 1685, only one point lower, to accelerate the downside. Watch the futures overnight since only a smidge of red with the S&P's will embolden the bears as the opening bell nears. A move through 1686-1697 is sideways action. As today's behavior shows, markets remain very indecisive and unstable. Bulls win with JJC 38.95. Bears win with VIX 14.26. The battle of copper versus volatility and one will flinch. If copper remains weak, and volatility remains low, the current status quo, the markets continue sideways with a slight upward bias.
8/2/13;
9:00 AM EST =
7/31/13; 7:00 PM EST EOM
= +49; signal line is +42
7/31/13;
9:50 AM EST = +49; signal line is +41
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