Wednesday, August 6, 2014


Keybot the Quant remains short moving into the Thursday session. Copper failed on Wednesday and it is very surprising that equities did not give up the ghost. Perhaps it will be delayed reaction and hit tomorrow? Watch JJC 38.92 (now at 38.64 creating market negativity). Bulls need JJC above 38.92 or they are in serious trouble.

The UTIL 50-week MA at 516.30 is an extremely critical level. Utilities are dropping dramatic over the last month down to 526 now only ten points above the critical 516. Long-time followers of Keybot the Quant will remember the trap-door references time to time. It is time to beat that drum again. UTIL 516 is a trap-door for the broad market. If utilities fail at this level, equities will tumble into free fall in quick order. There are utility company earnings on tap tomorrow morning which will greatly impact UTIL.

For the SPX starting at 1920, the bulls need to touch the 1928 handle and an upside acceleration will occur. The bears need to push under 1911.50 to create a downside acceleration. A move through 1912-1927 is sideways action.

With the copper failure today, a drop of 10 to 20 SPX handles should have occurred and it is a question why it did not? The bears are in firm control with the algo number now 51 points under the signal line. Equities should be dropping due to JJC under 58.92 perhaps tomorrow holds a surprise. If UTIL 516 fails any time forward, a trap-door opens and the stock market will tumble into free fall in quick order.

The bulls need to move copper higher pushing JJC above 38.92 which will stop the market selling and begin a relief rally. Watch copper overnight since as copper goes, so goes the market.

8/10/14; 7:00 PM EST =
8/6/14; 9:36 AM EST = -25; signal line is +26

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