Keybot the Quant is on the short side with utilities, copper and volatility running the show; mainly copper. Market bears need higher volatility or their goose is cooked. The VIX is trading this morning below 10 which is a slap to the bear's face. Bears need VIX above 10.91 to prove that stocks will sell off going forward.
Market bulls need either JJC above 33.36 and/or UTIL above 737.51. Copper is trading higher this morning so it looks like the other yellow metal is the star attraction today impacting market direction. As long as JJC remains under 33.36, and UTIL under 737.51, it does not matter that stocks rally since they will roll back over to the downside.
If copper (JJC) rallies above 33.36 the bulls are beginning another run higher for stocks. If JJC moves above 33.36 and the SPX moves above 2503, Keybot will likely flip long hence the imminent turn notation in the title line.
Call it a fight between volatility and copper today. Bears win with higher volatility while bulls win with higher copper. Copper futures are currently up +0.8% so that magnitude move in JJC will place price at 33.39 a few pennies on the bull side at the opening bell. The battle is for copper today which will dictate the broad stock market direction. Watch JJC 33.36 it tells you everything you need to know.
10/1/17;
7:00 PM EST EOM EOQ3 =
9/29/17;
10:00 AM EST =
9/26/17; 10:00 AM EST
= +68; signal line is +82
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