The jumpiness in the markets continue as the European soap opera plays on. Volatility, VIX, is now printing 29.73, well under the 30.50 level that the bears need, so the market bulls rule currently. SPX 1261 was taken out to the upside further empowering the market bulls today. If further upside occurs, it will begin with JJC (coper price) crossing above 46.65. If the bears try to wrestle back control of the indexes, they will need to move the VIX above 30.50. If neither scenario occurs, markets simply drift along sideways, with a slight bullish bias, until some other news bite forces a reaction.
Keystone's algorithm went long again but it is not enthusiastic. "Hold your nose and buy" is the mantra. It would not be surprising to see the markets turn back down. Perhaps now we are experiencing the small pop discussed with the Dow charts this morning that will set up the down side. Let JJC 46.45 and VIX 30.50 guide you today as discussed above. Come to think of it, a sideways day is not so bad since the Laurel Highlands of Pennsylvania is enjoying a glorious Autumn day today, the mature oaks in full display.
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