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

Keybot the Quant remains on the short side. The market goofiness continues. The algo number and signal line are each at +54. It is a bull-bear, knock-down, drag-out battle right now and only a coin flip will decide the winner ahead. Looking at the algorithm's inner metrics, the bias remains on the bear side with the numbers tied.

The Dow Jones Industrials dumped 666 points on Friday and 1,100 points during the week. The SPX is 110 handles off the high but remains comfortably positive on the year. As stated during all for January, this is special and rare market behavior occurring.

Note how JJC came down Friday afternoon to tease the 36.17 line in the sand that Keybot called out ahead of time but the week ended with JJC at 36.21 in the bull camp by 4 pennies creating broad stock market buoyancy. The Keybot the Quant algo continues tracking copper as the key parameter most impacting broad stock market direction currently.

It is very simple. Bears need weaker copper and must push JJC below 36.17, if so, the stock market is going to take another strong leg lower. If the bulls can hold the line at 36.17 and force JJC higher during Monday trading, the stock market will level off and begin a relief rally higher regardless of the way the day begins. JJC 36.17 is what you need to watch to determine stock market direction.

As copper goes, so goes the markets. Copper futures are trading overnight so that will likely tell you the way the US stock market will trade during the regular session.

Keybot is also tracking semiconductors. The chips are bullish right now creating upside in the stock market. The market bears need to push SOX under 1311.33 (now at 1318) to create a strong leg lower in stocks.

Thus, if JJC and SOX remain bullish, bears got nothing and the stock market will recover. If either JJC or SOX turns bearish, the stock market will noticeably drop. If both the JJC and SOX turn bearish, stocks will be in freefall again like Friday's price action.

Another thing to watch for is the bulls pulling a sneaky one where they will jog copper above and below the JJC 36.17 line in the sand a time or three like the action on Friday morning. This price action serves to place the algorithm in a position to go long. Thus, the bears need JJC 36.17 to fail, and fail decisively and keep on dropping. If you see the JJC playing games moving a touch below 36.17 for a few minutes or so, then back above for a half-hour or so, then back below again, then back above. This behavior will tell you that the bulls are likely going to rally copper higher and it will take the broad stock market higher.

Watch JJC 36.17 as the main rudder currently steering the stock market ship. Also SOX 1311-1312. Also the price behavior in and around JJC 36.17 if this key level fails. These parameters tell you everything you need to know about stock market direction on Monday. Keybot does not print any pre-scheduled numbers this week. The beat goes on.

2/11/18; 7:00 PM EST =

2/4/18; 7:00 PM EST = +54; signal line is +54 but algorithm remains short

2/2/18; 11:44 AM EST = +54; signal line is +55