Sunday, August 24, 2014


Keybot the Quant is long moving into the new week of trading. Copper and volatility are driving market direction more than any other parameter right now. Watch JJC 38.73 (now at 39.12 creating market bullishness) and VIX 12.79 (now at 11.47 causing market bullishness). If both parameters remain bullish, equities will float up with the Dow Industrials and Transports printing new all-time highs and the SPX floating above 2000+. If 1 of the 2 parameters turn bearish, the market top is in, a ceiling is immediately placed on any further upside and equities will begin trending lower. If both parameters turn bearish, markets will be in serious sell off mode and Keybot will likely be in position to flip to the short side. Caution is required if 1 of the 2 parameters turn bearish and an imminent turn to the short side will be in play if both parameters turn bearish.

For the SPX starting at 1988, the bulls need to push above 1993.50 to create an upside acceleration that will carry the banner to 2000. The bears need to push under 1985 to accelerate the downside. A move through 1986-1993 is sideways action to begin the week. Bears need weaker copper and the S&P futures to be down -3 or more overnight to show they have game come Monday morning, otherwise, they got nothing. Keybot prints 2 pre-scheduled numbers this week; one on Tuesday morning and the other on Friday morning. The August month of trading began at SPX 1930.67 and ends on Friday. There are only five trading days remaining with the SPX comfortably 57 points above the starting number for a positive month, thus far. Will the bulls maintain a positive August?

8/31/14; 7:00 PM EST EOM =
8/29/14; 10:00 AM EST =
8/26/14; 10:00 AM EST =
8/24/14; 7:00 PM EST = +69; signal line is +40
8/21/14; 10:02 AM EST = +69; signal line is +37

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