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

Keybot the Quant remains short as the S&P 500 prints a new all-time record high at 2873.23. The algorithm continues to idle along this week without printing any numbers. The imminent turn notation is added in the title line after a robust rally in the semiconductors. However, there is bombshell political news that President Trump's former attorney, Michael Cohen, cops a plea and says a candidate (Trump) directed him to violate campaign finance laws. The S&P futures are down -8 on Tuesday evening.

Keybot is tracking chips and volatility as the two main drivers of stock market direction currently. The bulls need SOX above 1354 (now at 1348) to gain upside juice and launch the stock market higher. If the SOX overtakes 1354, and the SPX moves above 2873, Keybot will likely flip long, hence the imminent turn notation in the title line.

The bears need higher volatility and must push the VIX above 13.666 (now at 12.86) to create a down move in the stock market and maintain bear control. Markets remain very erratic and unstable.

8/26/18; 7:00 PM EST = 
8/19/18; 7:00 PM EST = +54; signal line is +59