Thursday, August 18, 2016


Keybot the Quant remains long. The algo prints one number in the Wednesday trade. The bulls maintain control of markets with the algo number one tick above the signal line. Bulls need higher copper, JJC above 24.79 (now at 24.66), to guarantee more upside in the stock market. Copper is trading up about +1.5% overnight which is about 37 cents to the JJC which will place copper in the bull camp and make for happy bulls. JJC 24.79 is key today.

Bears need to keep copper under 24.79 and pull GTX under 2263 to send the stock market lower. The weakness in the US dollar index causes lift in commodities and copper and a punch to the bear's face. A higher dollar will likely reward the bears.

For the SPX starting at 2182, the bulls need only one point, to push above 2183, and bingo, price will run towards 2190. The bears need to push below 2169 to accelerate lower. A move through 2170-2182 is sideways action for Thursday.

The bulls continue to steer the bus. If copper remains weak, and GTX drops under 2263, consider the imminent turn to be in play, and if the SPX drops under 2169, Keybot may flip short, but this scenario does not appear on the table with copper rising in the pre-market. Copper and commodities are dictating stock market direction currently.

8/21/16; 7:00 PM EST =
8/17/16; 9:36 AM EST = +78; signal line is +77
8/16/16; 11:36 AM EST = +94; signal line is +77

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