Monday, July 28, 2014


Keybot the Quant  remains short as the bulls stage a comeback today. RTH moves above the 59.62 bull-bear level so equities recover. Over the last few minutes VIX drops under the 12.68 bull-bear line in the sand adding additional upside fuel for the stock market. It now makes sense that the stock market did not sell off more this morning since the breakdowns in RTH and VIX were only tentative. The bulls can run several SPX points higher if they can touch the 1985 handle

Overall, the bears continue to drive the bus. The bulls likely need either stronger commodities or semiconductors to prove that they can mount a sustainable recovery. Market selling will resume if either RTH drops under 59.62 or if VIX moves back above 12.68.

7/29/14; 10:00 AM EST =
7/28/14; 1:46 PM EST = +50; signal line is +59
7/28/14; 1:33 PM EST = +36; signal line is +60
7/28/14; 9:48 AM EST = +20; signal line is +62

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