Tuesday, September 15, 2015


Keybot the Quant remains short as the bulls fight back on Tuesday with a robust rally. Copper is back in the bull camp with JJC above 28.46 and this creates stock market buoyancy. Note, however, that RTH ran higher but could not overcome Keybot's line in the sand at RTH 76.10  which is now 76.07. It is amazing how the algorithm can identify the sector or parameter most impacting market direction, including the exact price level, before it occurs. When RTH failed to turn bullish you knew the upside in the rally would stall and stocks remain flat at the elevated level unable to yet push higher.

Wednesday is a fight between copper and retail stocks. Watch the bull-bear lines in the sand JJC 28.46 and RTH 76.07. JJC begins above 28.46 causing market bullishness so the bears must push JJC under 28.46 or they got nothing. RTH begins below 76.07 causing market bearishness so the bulls must push RTH above 76.07 or they got nothing. If copper remains bullish and retail stocks bearish and neither one flinches, the stock market will move sideways with an upward bias.

For the SPX starting at 1978, the bulls need to move above 1983 and bingo, the strong price resistance at 1985-1988 will be attacked quick and hard and likely give way to the upside. The bears need to push under 1954 to regain their mojo, a formidable task, so instead the bears will focus on pushing copper and retail stocks lower. A move through 1955-1982 is sideways action for Wednesday.

Note that the imminent turn status is in play. The algo number is only 10 points below the signal line. If RTH moves above 76.07, and the SPX moves above 1983, Keybot will likely flip long. Keep an eye on semiconductors as well; the algo is beginning to track SOX 631.50 as a line in the sand and price is now at 625. If SOX moves above 631.50, and the SPX moves above 1983, Keybot will likely flip long. Bulls need higher retail stocks and/or semiconductors and bears need lower copper.

9/20/15; 7:00 PM EST =
9/17/15; 9:00 AM EST =
9/15/15; 10:11 AM EST = -42; signal line is -32
9/14/15; 10:51 AM EST = -58; signal line is -30

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