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

Keybot the Quant remains short after flipping to the bear side last week out of the gate after the Labor Day holiday. The algorithm has been champing at the bit since Wednesday to flip back to the long side but the internal parameters will not fully latch so the move is not yet permitted. The SPX price is having trouble moving above the prior day's highs which is a sign of weakness rather than strength. The sideways whipsaw chop in the stock market continues chewing up the bulls and the bears.

Bears will benefit if retail stocks drop. Bears need RTH back under 79.93 asap. Bulls need lower volatility to prove that up is the direction forward for stocks. Bulls need VIX below 10.93 asap.

The algo number is 6 points above the signal line so Keybot wants to flip long. If the SPX moves above 2467 after the opening bell on Monday morning, Keybot will likely flip long, hence the imminent turn notation in the title line.

The best thing for bulls would be a slow steady increase in the S&P 500 (not a gap-up move). The best thing for bears is weaker retail stocks which will sink the stock market. Either retail stocks or volatility will likely flinch and dictate the direction ahead for the stock market. If retail remains bullish and volatility bearish, stocks will likely continue the sideways choppy slop.

Keybot prints one pre-scheduled number this week on Friday morning.

9/17/17; 7:00 PM EST =

9/15/17; 10:00 AM EST =

9/10/17; 7:00 PM EST = +70; signal line is +64 but algorithm remains short

9/6/17; 9:36 AM EST = +70; signal line is +65 but algorithm remains short

9/5/17; 9:36 AM EST = +54; signal line is +65; go short 2469; (Benchmark SPX for 2017 = +10.3%)(Keybot algo this trade = +0.7%; Keybot algo for 2017 = +2.2%)(Actual results this trade = +0.2%; Actual results for 2017 = +1.2%)