Wednesday, June 1, 2016


Keybot the Quant remains long moving into the Wednesday session. The algo number is 20 points above the signal line so the bulls are cruising along. The +80 does, however, represent an overbot condition in markets. The same fight continues. Bulls need higher copper to push stocks to new all-time highs. Bears need either lower retail stocks or higher volatility to start a firm path lower. Watch JJC 24.55, RTH 75.85 and VIX 16.90. If copper remains bearish, retail stocks bullish and volatility bullish, respectively, then the stock market will float along sideways with a slight upward bias.

For the SPX starting at 2097, the bulls need to push above 2103 to accelerate the upside and bears need to push under 2089 to accelerate the downside. A move through 2090-2102 is sideways action for Wednesday. The bulls have the ball. Bears got nothing unless they either create weakness in retail stocks or higher volatility.

6/5/16; 7:00 PM EST =
6/3/16; 9:00 AM EST =
5/31/16; 7:00 PM EST EOM = +80; signal line is +60
5/31/16; 10:00 AM EST = +80; signal line is +58

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