Tuesday, May 19, 2015

STOCK MARKET BULLISH -- LONG -- CAUTION -- TURN MAY BE IMMINENT

Keybot the Quant remains long and the algo did not print any numbers on Monday but prints four numbers today thus far including the pre-scheduled number before the opening bell. The markets remain erratic and unstable with utilities and retail stocks remaining in the bull camp but commodities take a dive as the US dollar catapults higher. Copper is also weaker.

The algorithm is tracking GTX 3237 as the top priority currently. Price is at 3230 seven points in the bear camp. Use this as the key parameter for broad market direction. Market bulls cannot send stocks higher without GTX overtaking 3237 and higher. Also pay attention to JJC 33.82 (copper). JJC is at 34.04 in the bull camp causing lift in the broad indexes but selling pressure will strongly increase in stocks if 33.82 fails. RTH 76.42 is another key metric Keybot is tracking with price now at 76.67 firmly in the bull camp but this can change at anytime.

The imminent turn notation is in the title line since copper may very well cause the algo to flip short. If GTX remains bearish under 3237, and if JJC drops under 33.82, and the SPX drops under 2120-2121, Keybot will likely flip short. So focus on GTX 3237, JJC 33.82 and SPX 2120 to determine broad market direction. For now, the bulls continue to cruise along with their feet up on the dashboard but they may hit a pothole in the road if copper falls further.

5/24/15; 7:00 PM EST =
5/19/15; 11:49 AM EST = +67; signal line is +57
5/19/15; 11:41 AM EST = +81; signal line is +57
5/19/15; 11:01 AM EST = +67; signal line is +57
5/19/15; 9:00 AM EST = +81; signal line is +57
5/17/15; 7:00 PM EST = +81; signal line is +55

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