Sunday, July 23, 2017


Keybot the Quant remains long with the bulls slapping the bears around each day. Slap, slap. The bulls remain in control with the algo number 11 points above the signal line. Keybot did not print any numbers on Friday. Keybot prints two pre-scheduled numbers this week one on Tuesday morning and the other Friday morning. The month of July ends on Monday, 7/31/17, next week.

The market bulls are in command of all market parameters except commodities and retail. Bulls need RTH above 80.65 (now at 80.34 creating negativity in the stock market) and GTX above 2204 (now at 2170) to create more upside juice for the stock market. Retail stocks are the key. The stock market will accelerate into the stratosphere if RTH moves above 80.65.

Market bears need weaker financials and copper and higher volatility to stop the stock market rally and create bearishness. The algo is most fixated on tracking XLF 24.32 (now at 24.80 creating bullishness in the stock market). If XLF falls under 24.32, the imminent turn will be in play, and if the SPX also falls under 2465, Keybot will likely flip short. So if you are bearish on the stock market, the one key thing you want to see is weaker banks.

If commodities and retail stocks remain bearish, and financials and volatility bullish, stocks will float along sideways with a slight upward bias.

7/31/17; 7:00 PM EST EOM =
7/30/17; 7:00 PM EST =
7/28/17; 10:00 AM EST =
7/25/17; 10:00 AM EST =
7/23/17; 7:00 PM EST = +70; signal line is +59
7/20/17; 1:25 PM EST = +70; signal line is +58

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