Friday, August 22, 2014


Keybot the Quant remains long. Copper was weak the previous evening so the bears were going to stage a fight, however, at yesterday's opening bell copper turned positive and began running higher fueling the stock market gains and new all-time record highs for the SPX. It's all going the bull's way. Bears need either JJC under 38.73 and/or VIX above 12.80 to stop the market upside. Very interestingly, despite all the uber bullishness, if both copper and volatility turn bearish, respectively, Keybot will be in position to flip to the short side. The caution flag will be out if one of the two parameters enter the bear camp and the imminent turn status will be in play if both parameters turn bearish.

For the SPX starting at 1992, the bulls need three points, to touch the 1995 handle and bingo, the upside will accelerate to 2000+ for the first time in history. The bears need to push under 1987 to accelerate the downside. A move through 1988-1994 is sideways action to end the week. S&P futures are flat. Watch copper and volatility. Copper is higher in today's early trading.

8/24/14; 7:00 PM EST =
8/21/14; 10:02 AM EST = +69; signal line is +37
8/20/14; 3:57 PM EST = +53; signal line is +34

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