Sunday, August 7, 2016


Keybot the Quant is long going into the new week of trading but has wanted to flip short since Thursday. The algorithm is focused on copper as the main parameter influencing broad stock market direction currently. The stock market was reacting to the BOE decision and US Jobs Report at the tail end of last week. The behavior of equities remains very odd and atypical. The tight two-week sideways range behavior has not been seen in decades.

If JJC remains below 24.92, the stock market will roll over to the downside. If the SPX drops under 2162, Keybot will likely flip short hence the imminent turn notation remains in the title line. The market bulls need JJC above 24.92 and they will be on easy street again rallying stocks higher. Pay attention to copper trading overnight Sunday into Monday.

For the SPX starting at 2183, closing at the high on Friday, at the new all-time highs, the bulls need any smidge of green in the S&P futures and bingo, stocks will continue accelerating higher targeting 2190. The bears need to push under 2169 to accelerate the downside. If 2169 fails, the important 2162 mentioned above will be tested quickly. A move through 2170-2182 is sideways action to begin the week.

Overnight tonight, the bears need negative copper and S&P index futures to point the way lower for stocks. The bulls need higher copper and S&P futures and the stock market party will continue. If the futures are split with one up and one down, the sideways behavior continues.

8/14/16; 7:00 PM EST =
8/12/16; 10:00 AM EST =
8/7/16; 7:00 PM EST = +63; signal line is +77 but algorithm remains long
8/5/16; 9:00 AM EST = +63; signal line is +77 but algorithm remains long

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