Wednesday, August 27, 2014


Keybot the Quant remains long and the battle with copper and volatility continues. Both parameters remain bullish which allows the stock market to keep floating sideways to sideways higher. The bears need either JJC 38.81 or VIX 12.52 to stop the market upside. JJC begins at 38.99 only 18 cents away from the bearish target. Copper is weak overnight down -0.2% but this will only create about 8 cents of downside and place JJC price at 38.90-ish so the bears will need more weakness if they want to flex their muscles. If copper is down about -0.5% or lower today that will place a lid in any further equity market upside. The bears also need higher volatility. VIX begins at 11.63 so the bears need a one-point jump to receive strong downside fuel. If both parameters flip bearish, Keybot will likely flip to the short side. If both parameters remain bullish, equities will continue floating higher.

For the SPX starting at 2000, the bulls need to push above 2005 to create an upside acceleration that will print 2009-2011 in quick order. The bears need to push under 1999 to accelerate the downside to 1991. A move through 2000-2004 is sideways action and a tight range so a winner will likely be determined outside this range.

8/31/14; 7:00 PM EST EOM =
8/29/14; 10:00 AM EST =
8/26/14; 10:00 AM EST = +70; signal line is +42

No comments:

Post a Comment

Note: Only a member of this blog may post a comment.