Friday, August 15, 2014


Keybot the Quant is bullish flipping long yesterday. The bears need SOX under 617.76, UTIL under 543.81 and/or VIX above 12.87 to stop the market upside. Otherwise, markets will float sideways to sideways higher. The bulls did some damage yesterday. Markets were at an inflection point and the lower volatility and higher semi's and utes slapped the bears in the face. For next week, the algo will fixate on UTIL 539.55 instead of the 543.81 number; thus, an easier level for the bulls to remain above. Watch UTIL at the closing bell today. If UTIL is under or near 540, that will hint that markets will be weak come Monday morning.

For the SPX starting at 1955, any smidge of green in the S&P futures will create a several handle upside acceleration to 1960-1961. S&P futures are +5 about two hours before the opening bell. The bears need to retrace yesterday's move and push under 1948 to regain mojo. A move through 1949-1955 is sideways action to end the week. The bulls are cruising but markets are eerily erratic and unstable. Copper and commodities remain firmly bearish and will prevent the bulls from moving significantly higher with stocks. Watch semi's, utes and volatility to forecast market direction. Keybot prints a pre-scheduled number this morning.

8/17/14; 7:00 PM EST =
8/15/14; 10:00 AM EST =
8/14/14; 12:01 PM EST = +53; signal line is +15
8/14/14; 11:46 AM EST = +37; signal line is +15
8/14/14; 11:17 AM EST = +53; signal line is +15

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