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

Keybot the Quant remains long but the bears are starting to knock on the door. The algo was sleeping all last week until Thursday when it springs into action and prints 12 numbers into the weekend including the one pre-scheduled number. Market bears tried to flip the model short on Thursday and Friday but the internal parameters would not fully latch to allow the move. The bulls remain in control with the algo number 12 points above the signal line.

The bears need weaker retail stocks and a five-point drop in the S&P 500. If RTH drops under 80.80 (now at 81.00), only 20 pennies away, and the SPX drops under 2472, Keybot will likely flip short, hence the imminent turn notation in the title line. If RTH remains above 80.80, the bears got nothing and the imminent turn will not be in play as the bulls push stocks higher.

Market bears would also benefit from lower semiconductors and higher volatility. Bears need SOX under 1075.73 (now at 1090) and/or VIX above 11.28 (now at 10.03). Thus, bears will stop the stock market rally dead in its tracks with RTH 80.80, SOX 1075.73 or VIX 11.28. Any one would do. If these three parameters remain bullish, the stock market will continue floating higher.

Keybot does not print any pre-scheduled numbers this week. Listen for news about retail stocks overnight, good or bad news, which will likely tell the tale for Monday and watch the chips closely.

8/13/17; 7:00 PM EST =

8/6/17; 7:00 PM EST = +99; signal line is +87

8/4/17; 10:27 AM EST = +99; signal line is +85

8/4/17; 10:07 AM EST = +83; signal line is +84 but algorithm remains long

8/4/17; 9:36 AM EST = +99; signal line is +84

8/4/17; 9:00 AM EST = +83; signal line is +82

8/3/17; 3:52 PM EST = +83; signal line is +82

8/3/17; 3:42 PM EST = +99; signal line is +81

8/3/17; 1:57 PM EST = +83; signal line is +79

8/3/17; 1:12 PM EST = +67; signal line is +78 but algorithm remains long

8/3/17; 1:07 PM EST = +83; signal line is +77

8/3/17; 12:52 PM EST = +99; signal line is +76

8/3/17; 11:52 AM EST = +83; signal line is +73

7/31/17; 7:00 PM EST EOM = +99; signal line is +71