Sunday, June 26, 2016


Keybot the Quant is short to begin the new trading week. There is surely a choppy and erratic market ahead. The algo number is 18 points below the signal line so the bears are comfortable. Watch copper as the key market direction driver to begin the new week of trading. JJC is at 24.11 exactly at the number the algorithm has identified the last couple days as the key bull-bear line in the sand. As copper goes, so goes the markets. Copper futures overnight will point the way forward for the US stock market. After the US opening bell Monday morning, bulls need JJC above 24.11 to begin a recovery rally while bears need JJC under 24.11 which will create a new leg of downward selling in the broad stock market.

Keybot is also tracking SOX 676.70. The chip index is at 675.40, below the 676.70, causing market negativity. If SOX moves above 676.70 a relief rally is definitely underway. For the bears, watch the SPX 2028 level. The week begins at SPX 2037. If 2028 fails, it will open a trap-door in stocks and it would not be surprising to see the S&P 500 dump from 20 to 40 handles in very quick fashion and sub 2000 would appear almost guaranteed.

For the SPX on Monday as it begins at 2037, the bears need to push under 2033 to accelerate the downside which will immediately test the critical 2028. The bulls are simply trying to stop the bleeding in the stock market and will accomplish this with higher copper, JJC above 24.11, and/or SOX above 676.70. The bears are in charge and the week begins with copper and chips determining the market direction ahead.

Keybot prints two pre-scheduled numbers this week one on Tuesday morning and the other on Thursday evening for the EOM. June ends on Thursday which also ends Q2 and H1. The third quarter and second half of the year and month of July begins on Friday.

7/3/16; 7:00 PM EST =
6/30/16; 7:00 PM EST EOM =
6/28/16; 10:00 AM EST =
6/26/16; 7:00 PM EST = +33; signal line is +51
6/24/16; 3:59 PM EST = +33; signal line is +53

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