Monday, July 14, 2014


Keybot the Quant remains bullish as the new week begins and the algo does not print any numbers during the Monday session. Keybot is simply motoring along on the long side. Bears need either RTH 59.43, VIX 13.03 and/or XLF 22.48 or they got nothing. The C earnings this morning set a positive tone for banks and slapped the bears in the face from the get-go. The market upside is likely limited, however, since commodities remain weak. If one of the three parameters turn bearish, and the SPX drops under 1970, Keybot will likely flip short. Since the bulls are remaining a safe distance from the three parameters creating market buoyancy the imminent turn notation is removed, for now.

For the SPX starting at 1977, the bulls need to touch the 1980 handle and an upside acceleration will quickly occur taking price to the all-time highs in the mid to high 1980's. The bears need to push under 1970 to accelerate the downside. A move through 1971-1979 is sideways action for Tuesday. The bulls are cruising. The bears got nothing until either the retail or financial sectors weaken or volatility moves higher. Interestingly, Retail Sales data hits at 8:30 AM EST and will greatly impact RTH.

7/18/14; 10:00 AM EST =
7/17/14; 9:00 AM EST =
7/13/14; 7:00 PM EST = +67; signal line is +64

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