Tuesday, August 19, 2014


Keybot the Quant remains long moving into the Tuesday session. The algo prints this week's pre-scheduled number resulting in a two-point increase to the signal line. The bulls remain in full control. The fight is between volatility and copper. Bulls need higher copper, JJC above 38.61, to send markets higher to the all-time highs. Bears need higher volatility, VIX above 12.84, to place a lid on the market upside. If JJC stays under 38.61 and VIX under 12.84, status quo, equities will float sideways with an upward bias.

For the SPX today starting at 1972, the bulls only need a smidge of green to create an upside acceleration and the S&P futures are +6 so the acceleration path is already in play. The 1976 level is key resistance. The bears need to push under 1958, a formidable task, to create a downside acceleration. Instead, the bears will focus on pushing volatility higher to try and stop the market rally. Pay attention to volatility and copper.

8/24/14; 7:00 PM EST =
8/19/14; 9:00 AM EST = +53; signal line is +24
8/18/14; 9:36 AM EST = +53; signal line is +22

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