Tuesday, November 4, 2014


Keybot the Quant remains bullish as the algo idles along without printing any numbers to begin the new week of trading. In the Monday session volatility remained elevated so the new all-time highs in equities were short-lived as would be expected. The bulls continue to need either VIX below 14.10 or JJC above 37.12 to verify another leg higher for the stock market.

For Wednesday, the VIX begins at 14.73 and the JJC at 37.04 both causing market bearishness but only a stone's throw away from potentially turning bullish to verify the market upside. Volatility and copper are the two most important factors affecting market direction currently. Copper is a smidge weaker in overnight trading.

For the SPX starting at 2018, the bulls need to push above 2024.46, the all-time record high print, to accelerate the upside. The bears need to push under 2014 to accelerate the downside. A move through 2015-2024 is sideways action for Wednesday. S&P futures are -4 about three hours before the opening bell teasing the lower limit but the bears will need a bit more juice if they want to push strongly lower. Watch VIX 14.10 and JJC 37.12 since they provide the market direction answer.

11/9/14; 7:00 PM EST =
11/7/14; 9:00 AM EST =
11/2/14; 7:00 PM EST EOM = +46; signal line is +28

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