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

Keybot the Quant remains short but is champing at the bit to go long with the algo number 4 points above the signal line. The algo was very active in the Tuesday trade printing seven numbers and is off to an early start on hump day. Interestingly, the SPX sits at 2888 exactly where Keybot went short on Tuesday, 9/4/18. The bulls and bears remain in a tug-o-war for stock market directional control.

Volatility is the key. Bears need the VIX above 13.16 while bulls need the VIX below 13.16. Wednesday begins with the VIX at 13.02 the bulls are jamming volatility lower which provides lift in the US futures. If the SPX moves above 2893, about 5 points higher than Tuesday's closing price for the regular session, Keybot will likely flip long. S&P futures are up.....wait for it..... wait a little bit longer for it....+5 (2888+5=2893). So the bulls are making a run higher in the S&P futures trying to regain stock market control when the opening bell rings for the regular session in about five hours.

Bears must push VIX above 13.16 as quick as possible or they will go down in flames today. The VIX 13.16 level dictates the direction forward for equities. Chips are also key. Watch SOX 1365.40 (now at 1361.89). Bulls will be throwing confetti watching stocks run strongly higher if the SOX moves above 1365.40. Bears must keep the chips below SOX 1365.40.

Thus, the battleground for hump day is volatility and semiconductors. As this message is typed, the VIX slips below 13 to 12.97. S&P +5. The beat goes on.

9/16/18; 7:00 PM EST =

9/14/18; 10:00 AM EST =

9/12/18; 3:45 AM EST = +68; signal line is +64 but algorithm remains short

9/11/18; 11:29 AM EST = +54; signal line is +64

9/11/18; 10:55 AM EST = +70; signal line is +66 but algorithm remains short

9/11/18; 10:19 AM EST = +54; signal line is +66

9/11/18; 10:08 AM EST = +70; signal line is +67 but algorithm remains short

9/11/18; 9:53 AM EST = +56; signal line is +67

9/11/18; 9:47 AM EST = +70; signal line is +68 but algorithm remains short

9/11/18; 9:37 AM EST = +54; signal line is +68
9/10/18; 10:38 AM EST = +70; signal line is +69 but algorithm remains short