Keystone's Morning Wake-Up 11/1/13; ISM

China PMI's are a touch better than expected although the small manufacturers remain challenged. This provides a boost to copper. Everything goes the bulls way these days and a new month means new money. Typically markets are bullish from the last day of the month into the fourth day of the new month. The new moon is Sunday, however, and markets are typically bearish moving through the new moon. The new moon is also the time when military action would occur since the side with the superior night vision technology has an advantage. The price action this afternoon should be interesting since Friday's are typically buoyant as shorts pare back positions ahead of the weekend but there is a lot going on these days. A major Bradley turn date occurs Sunday 11/3/13 and we are in a Bradley window now through next week where a significant market move may occur. The Bradley does not predict direction only that a major move is on tap so a big up, or big down. Was the pivot the Wednesday top? Keystone's Eclipse Indicator identifies the potential for a major market sell off to occur in the 11/11/13 to 12/11/13 time frame. The last targeted eclipse indicator date was 9/26/13 which identified the September top. The ISM Mfg Index at 10 AM will create a market pivot point. Fed's Kocherlakota speaks at 11:15 AM.

The same 4 parameters are dictating market direction; UTIL 506.22, GTX 4874, JJC 40.20 and VIX 14.60. If they remain status quo (utes and commodities causing bearishness and copper and volatility causing bullishness, respectively), the markets will end the week flat. Any change to any of the 4 parameters will send markets in that respective direction. For the SPX starting at 1757, the bulls need to push above 1768.50 to accelerate the upside. The bears need to push under 1756 to accelerate the downside, only one point lower. S&P futures are +5 so the bears do not have the juice as the day begins. A move through 1757-1768 is sideways action. The 8 MA is below the 34 MA on the SPX 30-minute chart signaling bearishness for the hours ahead, however, the bulls are going to try to create a positive 8/34 cross today to regain their mojo. Keybot the Quant remains short.  If UTIL moves above 506.22, or GTX above 4874, and the SPX moves above 1768.50, Keybot will likely flip long. At 4 PM today, at the closing bell, the UTIL 506.22 number expires and is replaced with 504.41. Therefore, pay close attention to UTIL 504.41 late day since a close below give the bears an advantage come Monday and a close above 504.41 will provide the bulls a boost come Monday morning.