Thursday, November 6, 2014

STOCK MARKET BULLISH -- LONG

Keybot the Quant remains long as the bulls punch the bears in the face pushing volatility lower. The VIX falls under the 14.10 bull-bear line in the sand identified by the algo which creates the upside market fuel and SPX above 2030. Everything continues to go the bulls way. Keybot continues to track volatility and copper as the key parameters dictating market direction currently.

For Friday, the bears must push VIX above 14.10 to place a ceiling in the stock market, otherwise, they are in for a lot of pain. The bulls need to push JJC above 37.03 (now at 36.38 causing market bearishness) to create further upside strength. If VIX stays below 14.10 and JJC below 37.03, equities will stagger sideways into the weekend.

For the SPX starting at 2031, another new all-time record high, the highest print ever in history, the bulls only need a smidge of positivity in the overnight S&P futures and the party continues higher. If the bulls can touch the 2032 handle after the opening bell, bingo, price will accelerate into the high 2030's. The bears need to push under 2016 to accelerate the downside. A move through 2017-2031 is sideways action to end the week. The algo prints a pre-scheduled number tomorrow morning before the opening bell. The bulls dealt a crushing blow to bears today with the lower volatility. Bears need to focus on creating higher volatility as soon as possible.

11/9/14; 7:00 PM EST =
11/7/14; 9:00 AM EST =
11/6/14; 3:31 PM EST = +60; signal line is +31
11/2/14; 7:00 PM EST EOM = +46; signal line is +28

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