Thursday, July 31, 2014


Keybot the Quant remains short after a roller coaster ride yesterday. The bulls tried to lower volatility but they could not keep the beach ball underwater. Instead bulls jammed semiconductors higher but fell short of the SOX 623 target as well. The bears could not make headway lower since the RTH remains above 59.62. Watch VIX 12.69, RTH 59.62 and XLF 22.63; the algo rates these three parameters as most greatly impacting market direction currently. Bulls need VIX under 12.69 or SOX above 623 or they have serious problems. Bears need RTH under 59.62 or XLF under 22.63 which will create stronger downside selling pressure. Markets ended flat yesterday since the parameters remained in their respective camps.

For the SPX starting at 1970, the bulls need to touch the 1979 handle and an upside acceleration will occur. The bears need to push under 1962.50 to create a downside acceleration. S&P futures are weak overnight at -11 due to the Russia sanctions and Argentina default. This negatively will easily print a sub 1962.50 number. A move through 1963-1978 is sideways action. The bears have the ball. Keybot prints a pre-scheduled number this evening for EOM. July began at SPX 1960 so the bears need a ten-point down day to stop a positive month from printing.

8/1/14; 9:00 AM EST =
7/31/14; 7:00 PM EST EOM =
7/30/14; 9:47 AM EST = +39; signal line is +50
7/30/14; 9:36 AM EST = +53; signal line is +51 but algorithm remains short
7/29/14; 1:51 PM EST = +39; signal line is +52

No comments:

Post a Comment

Note: Only a member of this blog may post a comment.