Monday, July 7, 2014


Keybot the Quant remains long but the bears finally show a small sign of life. Bears push commodities lower with GTX losing the important 5029 bull-bear level identified by the algo.  The SPX drops under 1976 for a few minutes but the bears could not maintain the lower path. A drop under 1976 will accelerate the SPX lower a few handles. The algo number and signal line are only four points difference now but the bulls continue cruising. The GTX is recovering now only five points under 5029 so the bears may fold like a cheap suit into the closing bell.

The algo is tracking retail and financials. If either RTH 59.30 or XLF 22.43 fail, Keybot will likely flip to the short side. However, these bull-bear lines in the sand remains substantially under current prices. Therefore, no need for the caution flag as yet. The bears have stopped the upside move in the stock market with GTX under 5029. The bulls will not be able to move stocks higher unless they regain GTX 5029.

7/13/14; 7:00 PM EST =
7/7/14; 10:53 AM EST = +67; signal line is +63
7/6/14; 7:00 PM EST = +81; signal line is +63

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