Keybot the Quant remains long. The algo is idling along this week and has not printed any numbers since Tuesday. The bulls have been cruising along with the Dow printing record highs. Utilities move higher, copper moves higher and volatility sinks the VIX has a 9-handle. To use a baseball analogy for the market bears, that is one, two, three strikes yer out at the ole ball game. The bulls rule.
The algo is tracking retail, copper and utilities as the key parameters currently impacting broad stock market direction. Market bulls need RTH above 80.75 (now at 79.84) to take stocks higher. Market bears need JJC under 29.80 (now at 30.25) and/or UTIL under 697.28 (now at 703) to stop the market rally. If 1 of these 2 turn bearish, the stock market rally is over. If both turn bearish and the SPX slips below 2442, Keybot may flip short.
Pay attention to utilities since there is another changing of the guard occurring for next week. The UTIL 697.28 number will expire at 4 PM EST tomorrow and be replaced with 699.22 as the bull-bear line in the sand for all of next week. If UTIL finishes the week below 699.22, that is a big feather in the bear's cap and will indicate that stocks will likely open lower on Monday morning. Bulls will rejoice if UTIL stays above 699.22.
Keybot prints a pre-scheduled number at 10 AM EST tomorrow one-half hour after the opening bell. The bulls are cruising slapping the bears around. Slap, slap.
7/16/17;
7:00 PM EST =
7/14/17;
10:00 AM EST =
7/11/17; 11:40 AM EST
= +70; signal line is +48
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