STOCK MARKET BEARISH -- SHORT -- CAUTION

Keybot the Quant remains short as the bifurcated stock market action continues. Chips, copper and commodities remain steadfastly bearish while banks, volatility and the NYA Index remain strongly bullish. None of the parameters want to give up ground. Keybot idled along all day Monday without printing any numbers.

For Tuesday, bulls need higher semiconductors, copper and/or commodities to prove that they can take the major stock indexes to new record highs. The bears need lower banks, lower NYA Index and/or higher volatility to prove that down is the direction ahead for stocks.

The algo identifies the VIX as the parameter most likely to tip its hand and dictate the direction ahead for the stock market. Bears need VIX above 13.666 (now at 12.49) to send equities sharply lower and end the stock market rally. The bulls will continue to float stocks incrementally higher if they can keep the VIX below 13.666. If the bears win this near-term battle at 13.666, the stock market will then fall apart if the VIX moves above 14.54. The stock market is exhibiting odd price action very erratic and unstable. The beat goes on.

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