Monday, November 24, 2014


Keybot the Quant remains long moving into the Tuesday session. The algo did not print any numbers during Monday trading and the battle between volatility and copper continues to determine market direction ahead. Bulls need JJC above 36.90. Bears need VIX above 14.34. Comically, both key parameters drift lower on Monday. So not only does neither side want the ball, both are running from the ball. Since the two parameters are status quo, markets stagger sideways with an upward bias and the SPX closes at a new all-time record high at 2069. Either copper or volatility will flinch and provide the market answer ahead.

For the SPX starting at 2069, the bulls need less than one point, to punch up through 2070, to create an upside acceleration that will target 2080. The bears need to push under 2065 to create a downside acceleration. A move through 2066-2069 is sideways action for Tuesday. The bulls are driving the bus. If VIX moves above 14.34, and the SPX drops under 2065, there is a high liklihood that Keybot will flip shortWatch the S&P futures to see if any smidge of positivity occurs which will make for happy bulls. Also watch copper overnight to see what direction it wants markets to move in. Keybot prints a pre-scheduled number tomorrow morning shortly after the opening bell.

11/25/14; 10:00 AM EST =
11/23/14; 7:00 PM EST = +61; signal line is +50

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