Monday, November 2, 2015


Keybot the Quant remains long and the market strangeness continues. Keybot has wanted to flip short for the last 3-1/2 days but the internal programming rules will not yet latch to permit the move. The algo did not print any numbers today. Stocks rally big to begin the week and new month of November.

The SPX overtook 2094 so price accelerated higher above 2100. Interestingly, the bulls need higher copper and/or utilities to prove that more upside is the correct path ahead but both remain in the bear camp. This is extremely odd and unstable market behavior. Bulls need either UTIL above 588.81 and/or JJC above 27.75 to prove that the big upside rally will continue. Otherwise, the expectation would be for the upside move in stocks to stall.

For Tuesday, with the SPX starting at 2104, the bulls only need two points, to push up through 2106 and bingo, price will accelerate higher targeting 2110. Watch the overnight S&P futures to see if the bulls can muster up a couple positive points. The bears need to push under 2081, a formidable task, so instead bears will focus on keeping utes and copper in the bear camp which will stall the move higher in equities. A move through 2082-2105 is sideways action for Tuesday.  The bulls are driving the bus but the algo wants to flip short and the peculiar market action continues. The SPX likely needs to drop under 2081 for Keybot to flip short.

11/8/15; 7:00 PM EST =
11/6/15; 9:00 AM EST =
11/1/15; 7:00 PM EST EOM = +35; signal line is +40 but algorithm remains long

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