Keybot the Quant remains long. The algo identifies copper and commodities as the two key parameters currently impacting market direction. Watch JJC 37.90 and GTX 4969, respectively. Bulls need higher copper, JJC above 37.90, and, at least at the start today, this is not going to happen since copper is busy committing hari-kari in the bathroom. Bears need GTX under 4969 to create solid weakness in equities. Equities will remain flat with a slight upward bias if GTX stays above 4969. If GTX drops under 4969, and the SPX loses 1923, Keybot will likely flip short. The CPCE under 0.50 for the last couple days at multi-year lows signals uber complacency and a significant market top likely occurring now or in the coming days.
Dollar/yen 102.21. Note how the dollar/yen dropping is not having the same impact on stocks and bonds as in recent months. The euro/dollar/yen relationship has to be sorted out as the days play out. Draghi needs to trade in his pea-shooter for a bazooka since the ECB stimulus announcement results in a euro above 1.36 above where it was before his announcement. Consumer Credit is released at 3 PM showing how much debt and what type of debt the consumer is taking on. Watch GTX 4969 as the rudder guiding the market directional ship today. Bulls win if they keep GTX above 4969. Bears win if they push GTX under 4969. Considering all the hype, the market reaction to both the ECB decision and jobs report is muted. The David Tepper comments create much of the market upside this week.