STOCK MARKET BULLISH -- LONG -- CAUTION

Keybot the Quant remains long and is idling sideways without printing any numbers since last Tuesday (excluding the Wednesday and Sunday pre-scheduled numbers). The bulls are cruising with the algo number 18 points above the signal line. The caution flag remains out, however, since the price action appears very unstable.

The bulls need higher commodities and copper to keep the upside party in the stock market going.

The bears need lower chips, utilities and/or banks; SOX under 1355 (now at 1359), UTIL under 712.42 (now at 718) and/or XLF under 27.23 (now at 27.56), respectively. Any one of these three will immediately stop the stock market rally. If two flip bearish, the imminent turn to the short side is likely on tap for Keybot. In addition, if one of the three parameters turn bearish, then oscillates back above the level listed, and then bearish again, and so forth, that will hint that the model is likely ready to flip to the short side.

Volatility is in the bull camp. The bears have absolutely nothing until the VIX overtakes the 200-day MA at 14.29 (now at 12.86 with a HOD on Friday at 13.58). Keybot identifies VIX 15.35 as the level where the stock market will begin falling apart in earnest.

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

7/29/18; 7:00 PM EST =

7/27/18; 10:00 AM EST =

7/22/18; 7:00 PM EST = +70; signal line is +52

7/18/18; 9:00 AM EST = +70; signal line is +51