Wednesday, July 22, 2020


Keybot the Quant remains long. The bears threaten to take equities lower but the bulls regain stock market control with the algo number 12 points above the signal line. The bulls pumped the NYA index higher to win the day. Ditto commodities. Utilities, however, remain weak so the battle continues.

Bulls need stronger utilities to ride the path to stock market victory and new record highs. It is the only major sector that is not yet providing bull energy to the broad stock market. Bulls need UTIL above 827.83 and also above 835.39 to pave the way to stock market glory. UTIL begins the hump day session at 820. Each day that UTIL remains below the 828 palindrome is another day where negativity is building within the stock market.

Bears need NYA back below 12469 pronto. NYA begins at 12509. This price behavior is key for the broad stock market. As the NYA goes, so goes the stock market. Bears also need GTX below 1688 (now at 1730). The spurt higher in stocks, commodities, gold and silver the last few days is due to the dollar dropping. The euro pops above 1.15 after the ECB drama late last week.

Bulls need to keep the NYA above 12469 and moving higher while pumping utilities. Bears need to keep utilities weak and trending lower while pulling the NYA back below 12469 and/or GTX below 1688. If NYA or GTX turn bearish, and the SPX drops below 3248, trending lower, Keybot will likely flip short. The SPX begins at 3257 so bears would need at least a 9 point drop in the S&P 500. S&P futures are up +5 and the VIX is at 24.60 six hours before the opening bell for the regular US trading session. The beat goes on.

7/26/20; 7:00 PM EST =
7/21/20; 9:36 AM EST = +40; signal line is +28
7/20/20; 10:18 AM EST = +26; signal line is +27 but algorithm remains long

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