Tuesday, May 19, 2015


Keybot the Quant remains long as the RTH leaked lower near the critical 76.42 bull-bear level. Wednesday trading will be a fight between retail stocks, copper and commodities. Watch RTH 76.42 now at 76.55 causing market bullishness. Watch JJC 33.82 now at 34.00 causing market bullishness. Watch GTX 3237 now at 3217 causing market bearishness.

Thus, it is party time for the bulls if GTX moves above 3237 with stocks running to new all-time highs. The bears need either RTH under 76.42 or JJC under 33.82 to create market selling and if either one flips bearish, and the SPX drops under 2125, Keybot will likely flip short. Keep an eye on copper trading overnight.

For the SPX starting at 2128, the bulls need to touch the 2133 handle and bingo, the upside will accelerate printing new all-time record highs towards 2140. The bears need to push under 2125 to create several quick handles of downside under 2120. A move through 2126-2132 is sideways action but since this is a tight 6-point range, instead a winner will be likely decided be it the bulls or the bears as described.

The bulls are driving the bus but the bears are in close pursuit. Lots of retail companies report earnings and these results will directly impact RTH and help dictate market direction. The US dollar is also in play since a higher dollar will send GTX and JJC lower while a lower dollar will send commodities and copper higher.

5/24/15; 7:00 PM EST =
5/19/15; 11:49 AM EST = +67; signal line is +57
5/19/15; 11:41 AM EST = +81; signal line is +57

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