Sunday, March 1, 2015

STOCK MARKET BULLISH -- LONG

Keybot the Quant remains long moving into the new week of trading. UTIL begins at 594.17 below the important 596 level that is in play for every day this week. This will provide the bears an edge but if UTIL jumps higher at the opening bell above 596 the fix is in and the bulls are going to run stocks higher.

JJC begins at 32.19 above the important 31.98 bull-bear level identified by the algo. This creates market lift and the strength in copper last week prevented equities from moving lower. Watch copper overnight into Monday for an early tell on market direction. If copper is weak the bears are in good shape especially with UTIL under 596. If copper is trading higher overnight, JJC will move higher and the bears will be slapped in the face.

For the SPX starting at 2104.50, the bulls need to push 8 points higher, above 2112.50 and bingo, the upside will accelerate into a big bull party. The market bears have an easier path only needing to push under the 2104 level, less than one point lower, and boom, the SPX will accelerate lower likely in concert with falling utilities and copper. A move through 2104-2112 is sideways action to begin the week. The bulls continue to have the wind at their backs with the algo number 23 points above the signal line. The graphical printout for the algorithm is at its heart an oscillator (a chart that moves above and below a mid-point similar to RSI and MACD indicators on stock charts) so the +84 number above the 80 level indicates an overbot condition.

3/8/15; 7:00 PM EST =
3/6/15; 9:00 AM EST =
3/1/15; 7:00 PM EST EOM = +84; signal line is +61
2/27/15; 10:33 AM EST = +84; signal line is +59

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