Sunday, June 25, 2017


Keybot the Quant remains short as the market drama continues. The algorithm is champing at the bit to go long with the algo number 2 points above the signal line but the internal programming rules will not yet fully latch to permit the move. If the SPX moves above 2441, Keybot will likely flip long hence the imminent turn notation is in the title line. The market bulls need a slow and steady rise in stocks rather than a gap-up move at the opening bell on Monday morning.

The market bears can begin pushing strongly lower if either copper or the banks weaken. Bears need either JJC under 29.44 (now at 29.77) and/or XLF under 23.72 (now at 23.89). Either parameter will create immediate selling in stocks. Both flipping to the bear camp will create a strong downside move in stocks. If VIX moves above 11.60, equities will be tumbling lower in earnest as a major selling event will be underway.

Keybot prints two pre-scheduled numbers this week one on Tuesday morning and the other on Friday morning. The month, second quarter and first half of the year ends on Friday, EOM, EOQ2, EOH1, respectively.

For Monday, bulls are cheering for SPX 2441 and higher to claim victory ahead. Bears are cheering for JJC under 29.44 or XLF under 23.72 which will cause stocks to sell off. Watch the copper futures trading overnight for hints and listen to any bank news in the early morning.

7/2/17; 7:00 PM EST EOM EOQ2 EOH1 =
6/30/17; 10:00 AM EST =
6/27/17; 10:00 AM EST =
6/25/17; 7:00 PM EST = +70; signal line is +68 but algorithm remains short
6/21/17; 2:41 PM EST = +70; signal line is +68 but algorithm remains short

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