Keybot the Quant remains short since December. The algo is focused on copper, chips and banks as the key parameters most impacting market direction currently.
Bears need JJC under 36.17 (now at 36.51) to create another downleg in the stock market. Copper futures are down -0.3% as this is typed but bears are going to need a -0.9% drop before they cheer.
Bulls need either SOX above 1311.50 (now at 1302) and/or XLF above 28.60 (now at 28.39) to begin a healthy relief rally. Either parameter will stop the stock market downside, stabilize markets and begin to create an upward bias. Bulls, however, need both parameters to turn bullish if they want Keybot to flip long. If one parameter flips long, consider the imminent turn to the long side to be in play. If both the SOX and XLF turn bullish, and the SPX rallies above 2701, Keybot will likely flip long.
Thus, bears are rooting for lower copper while the bulls are cheering for stronger semiconductors and banks. Monitor activity in these parameters since it will tell you the stock market direction ahead. Copper futures are down -0.44% five hours before the opening bell for the US trading session.
2/11/18;
7:00 PM EST =
2/6/18; 9:49 AM EST = +22;
signal line is +48
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