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

Keybot the Quant remains on the short side as the bulls and bears battle. The algo number is only 6 points below the signal line. Yesterday the bears were joyous but today, in the Thursday trade, the bulls slap the bears in the face. The bears remain in control of the stock market.

Bulls push stocks higher by stabbing volatility in the gut and pushing the NYA Index higher. The bulls, however, did not have enough juice to flip Keybot long since the chips are soft (and NVDA is down -4.4% in late US trading after reporting earnings this evening).

For Friday, the bulls need stronger semiconductors. Bulls need to push the SOX above 1361.50 (now at 1333 which is its 200-day MA support; it is bounce or die time at the 200) which would likely set up Keybot to go long.

The bears need to push volatility higher and/or the NYA Index lower. Either parameter turning bearish will immediately stop the upside stock market rally. Bears need to push the VIX above 14.15 (now at 13.45) and/or NYA below 12738.80 (now at 12841).

Keybot prints a pre-scheduled number tomorrow morning. If the SOX moves above 1361.50 and the SPX moves above 2850, Keybot will likely flip long thus, the imminent turn notation is in the title line. If VIX and NYA remain bullish, and SOX bearish, the stock market will likely stagger along sideways with a slight upward bias.

8/19/18; 7:00 PM EST =

8/17/18; 10:00 AM EST =

8/16/18; 9:36 AM EST = +54; signal line is +60

8/16/18; 9:00 AM EST = +40; signal line is +61

8/16/18; 5:02 AM EST = +40; signal line is +62

8/15/18; 9:48 AM EST = +26; signal line is +64