Thursday, October 30, 2014


Keybot the Quant remains long moving into the Thursday session. Watch the NYA 10647 level with price a hair below giving the market bears the nod. Isn't it amazing how the algorithm can identify these key levels before they occur? The stock market will move higher if the NYA prints above 10647 and will move lower if the NYA remains under 10647. Copper is also key; the JJC 37.16 level. Note how JJC sunk lower closing at 37.19 waiting for today to decide direction. Again, isn't it amazing how Keybot can identify these levels ahead of time? The stock market will move higher if JJC stays above 37.16 and will move lower if JJC drops under 37.16. At this writing about 2-1/2 hours before the opening bell, copper is collapsing over -1% and S&P futures are -9. JJC will fail after the opening bell providing bear fuel.

For the SPX starting at 1982, the bulls need to push above 1991 to accelerate the upside. The bears need to push under 1969 to accelerate the downside. Even with the weak futures, the projected drop in the SPX would only be around 1972-ish. The market bears will need several more points to create a strong downside slide. A move through 1970-1990 is sideways action.

The bulls are driving the bus but the bears are fighting back after receiving a beating during the last couple weeks. Copper should fail today which provides downside market juice. It is not enough to flip the model to the short side. The algo is tracking semiconductors; SOX 613. SOX price is at 624 well above the 613 bull-bear line in the sand and the market bears probably need this to fail for the algo to be in position to flip to the short side.

11/2/14; 7:00 PM EST EOM =
10/31/14; 10:00 AM EST =
10/29/14; 3:59 PM EST = +46; signal line is +10
10/29/14; 3:46 PM EST = +60; signal line is +7
10/29/14; 2:05 PM EST = +46; signal line is +3
10/29/14; 1:58 PM EST = +60; signal line is -0
10/29/14; 1:45 PM EST = +46; signal line is -3
10/28/14; 3:06 PM EST = +60; signal line is -6

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