Tuesday, May 10, 2016


Keybot the Quant remains short. The algo has not printed any numbers thus far this week. The bulls need either higher copper or higher semiconductors to prove they have the beans to take the stock market higher. Watch JJC 25.18 (now at 24.03) and SOX 653 (now at 644). Copper is very weak so the SOX 653 number may be very important over the coming day or two.

The bears need weaker retail stocks and commodities. Watch RTH 76.15 (now at 77.24) and GTX 2195 (now at 2266). If JJC and SOX remain bearish, and RTH and GTX bullish, the stock market will float along sideways with an upward bias. If SOX moves above 653, Keybot will likely flip long. The levels for the above four parameters can be watched the remainder of the week (they will continue to change slightly but will remain a good guide for a few days).

For the SPX starting Wednesday at 2084, the bulls need any smidge of positivity in the overnight S&P futures and price will accelerate higher to 2090 and more after the opening bell. The bears need the SPX to retrace Tuesday's big upside move to regain their mojo, a formidable task, so instead bears will focus on pushing retail stocks and chips lower. One of the above four parameters will flinch and that will dictate the stock market direction ahead.

5/15/16; 7:00 PM EST =
5/13/16; 10:00 AM EST =
5/8/16; 7:00 PM EST = +60; signal line is +74
5/6/16; 2:04 PM EST = +60; signal line is +74

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