Tuesday, August 5, 2014


Keybot the Quant remains short moving into the Wednesday session. The algo has not printed any numbers yet this week despite all the market drama. The bears remain steady to the downside. RTH collapses like the tuba player after marching in the hot summer sun. Watch copper as the key market driver. JJC dropped to near 39 zeroing in on Keybot's target number.

Watch JJC 38.94 as the bull-bear line in the sand. The behavior in copper overnight and through tomorrow is critical for market direction. JJC begins at 39.08 only 14 pennies in the bull camp creating lift in equities. Market bears need JJC under 38.94 and the market carnage they have been patiently waiting for two years will be at hand. If copper fails, the market is in serious trouble. Bulls need to maintain JJC above 38.94, above 39, above 39.08, and heading higher which will signal the all-clear and the next stock market relief rally is on tap.

For the SPX starting at 1920, the bears need to push under 1914 and victory is at hand. Copper will be collapsing and the SPX will likely make a beeline to 1900. The bulls need to retrace the 19 points of downside bear damage to regain their mojo, a formidable task, so instead the bulls will focus on not allowing copper to fail while trying to keep S&P futures buoyant. A move through SPX 1915-1935 is sideways action for Wednesday. The bears are driving the bus. Watch copper since as copper goes, so goes equities.

8/10/14; 7:00 PM EST =
8/3/14; 7:00 PM EST = -9; signal line is +30

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