This morning's selloff was created by weakness in copper and the SPX falling back below the critical 2994 level. By munch time, copper and the SPX were back in the bull camp.
The bulls need stronger utilities, commodities and NYA index to continue the rally. Bulls need to push the NYA above 12365 (now at 11838) to prove that the rally is real and has strong legs higher. If NYA turns bullish, stocks will not look back; they will rocket launch straight vertical.
Conversely, if the SPX loses 2994 (now at 3036 to start the Thursday session) and remains below, the stock market party is likely over for the rest of the year, and bad things will happen to stocks going forward. Likewise, if CPER loses 14.94 (now at 15.08), the stock market rally immediately ends. This represents a -0.9% drop in copper futures so keep an eye on the red metal overnight.
The quant will likely hesitate at going short even if both CPER loses 14.94 and the SPX drops under 2994. However, if both of these parameters turn bearish and you start to see one of the parameters, or both, oscillating above and below their critical bull-bear levels listed above, the model is likely getting ready to go short.
Keybot prints a pre-scheduled number on Friday. May trading ends this week (EOM) and June trading begins on Monday.
5/31/20;
7:00 PM EST EOM =
5/29/20;
10:00 AM EST =
5/27/20;
12:16 PM EST = +7; signal line is -31
5/27/20;
11:51 AM EST = -9; signal line is -32
5/27/20;
10:38 AM EST = -23; signal line is -32
5/27/20; 9:55 AM EST = -9; signal line is -32
5/26/20; 3:57 PM EST = +7; signal line is -33
5/27/20; 9:55 AM EST = -9; signal line is -32
5/26/20; 3:57 PM EST = +7; signal line is -33
5/26/20;
3:46 PM EST = -7; signal line is -36
5/26/20;
10:00 AM EST = +7; signal line is -38
5/26/20;
9:36 AM EST = +7; signal line is -40
5/24/20;
7:00 PM EST = -23; signal line is -43
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