Thursday, July 31, 2014


Keybot the Quant remains short as markets collapse. The algo was very active today printing six numbers. The month of July prints negative for the SPX. Keybot is tracking utilities with UTIL 543.00 as a key market direction driver. UTIL price is under at 541.82 which is creating broad market negativity. Very simply, equities will recover if UTIL moves above 543.00. More importantly, watch the 4 PM closing price of UTIL for the week because next week UTIL must stay above 551.66 to prevent market selling. So the bulls must not only pump UTIL higher by two points at the opening bell but must drive UTIL above 551.66 before the Friday session ends. If not, more broad market weakness will be in play for Monday.

The bulls also need XLF above 22.61 and/or RTH above 59.62 to regain their mojo. Bears can receive more downside juice with JJC 38.90 (weaker copper). The bears are cruising without worry; the algo number goes negative to -9, fifty points under the signal line.

For the SPX starting at 1931, the bears only need a smidge of negativity in the S&P futures and the SPX will drop several handles at the opening bell. The bulls will focus on keeping the overnight S&P futures positive and at the opening bell pushing UTIL above 543.00 to stop the market bleeding. Keybot prints a pre-scheduled number tomorrow morning before the opening bell.

8/3/14; 7:00 PM EST = 
8/1/14; 10:00 AM EST = 
8/1/14; 9:00 AM EST =
7/31/14; 7:00 PM EST EOM = -9; signal line is +41
7/31/14; 11:59 AM EST = -9; signal line is +44
7/31/14; 11:19 AM EST = +7; signal line is +46
7/31/14; 9:58 AM EST = +23; signal line is +47
7/31/14; 9:48 AM EST = +39; signal line is +48
7/31/14; 9:40 AM EST = +23; signal line is +49
7/30/14; 9:47 AM EST = +39; signal line is +50

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