STOCK MARKET BEARISH -- SHORT -- CAUTION -- TURN MAY BE IMMINENT

Keybot the Quant remains short as stocks chop sideways today rallying strongly due to strength in the chips and financials. The algo number is only 2 points under the signal line so the bulls are making a strong run higher. If the VIX falls below 11.39 (now at 11.85), Keybot will likely whipsaw back to the long side. Market bears need either SOX under 1074 (now above 1076) and/or XLF under 24.65 (now at 25.72) to stop the rally in its tracks.

Volatility, chips and banks rule the roost today and dictate the path ahead for stocks. Bulls win with VIX 11.39 while bears win with SOX 1074 or XLF 24.65.

8/27/17; 7:00 PM EST =

8/22/17; 9:42 AM EST = +56; signal line is +58

8/22/17; 9:38 AM EST = +40; signal line is +59

8/21/17; 9:36 AM EST = +24; signal line is +61; go short 2426; (Benchmark SPX for 2017 = +8.4%)(Keybot algo this trade = -0.3%; Keybot algo for 2017 = +4.0%)(Actual results this trade = -0.6%; Actual results for 2017 = +4.2%)