Tuesday, October 28, 2014


Keybot the Quant remains long as the bears are slapped in the face during a late session melt-up. The NYA moves above the 10646 line in the sand (40-week MA) which signals a cyclical bull market ahead crushing the bear's hope for extended downside. The bulls bludgeoned the bears today using copper and semiconductors early in the day and the NYA above the 40-week MA to unleash the market melt-up during the last hour of trading. 

NYA 10646 is key at the opening bell for Wednesday and the bears must send the NYA under 10646 as soon as possible, otherwise, the SPX will be headed to 2000+. Also watch copper in overnight trading since the bears need to push JJC under 37.16 (now at 37.38 creating bullishness in stocks). A 22 cent drop is -0.6% so this is the magic percentage that bears need to see copper drop by overnight. The algo is also tracking volatility. Watch VIX 13.96 (now at 14.52 creating negativity). If VIX drops under 13.96 the SPX will explode higher above 2000.

For the SPX starting at 1985 closing at the highs in the Tuesday session, the bulls only need a smidge of green in the futures since this will accelerate the upside several handles through the strong 1985-1986 strong resistance and target 1998. So watch to see if the overnight S&P futures are positive, or not. The bears need to push under 1964 to regain their mojo, a formidable task, so at the same time bears will focus on beating copper lower overnight as well as sending the NYA and semiconductors lower. A move through SPX 1965-1984 is sideways action for Wednesday.

The bears were beaten severely Tuesday and will have to fight back on Wednesday. The bears need NYA 10646 and/or JJC 37.16 when the opening bell rings, otherwise, the bears will have to bend over and receive further beatings. The bulls are cruising with the algo number 66 points above the signal line.

10/31/14; 10:00 AM EST =
10/28/14; 3:06 PM EST = +60; signal line is -6
10/28/14; 10:00 AM EST = +46; signal line is -8

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