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

Keybot the Quant remains short despite the bull party in the stock market. The algo number is 7 points above the signal line with Keybot champing at the bit to flip long but the internal parameters are not fully latched as yet to permit the move. It is fascinating market price action.

As of the end of day hump day, Keybot wants to go long so all the bulls had to do on Thursday morning was to move the S&P 500 slowly higher. Instead, whammo, the bulls jammed stocks skyward with a gap-up move. This triggers a gap-up timer which prevents the move to the long side. It provides time for the markets to settle and stabilize. Once that timer expired, the SPX was unable to take out the HOD at 2906.76 which is one of the many parameters it needed to latch.

Thus, the bulls still have it on a silver platter if they want it. If the SPX moves above 2907 (begins at 2904.18) on Friday morning, only 3 points higher, Keybot will likely flip long. The bulls can receive upside juice if they push the SOX above 1365.20 (now at 1362).

The bears need to keep the chips in their camp while they push the XLF below 27.99 (now at 28.03) and/or VIX above 13.16 (now at 12.37). The XLF collapsed in the Thursday trade to 27.99 but bounced. If that would have failed, the stock market would have likely crumbled. It is amazing that Keybot can identify these key parameters before they happen.

So the bulls need SPX 2907 and SOX 1365.20 and it will be one big upside party with Keybot likely flipping long. The bears need banks to fail and the stock market will be in big trouble. If volatility then spikes, stocks will drop like a rock. The bears will likely need at least the XLF or VIX to turn bearish on Friday.

Focus on SPX 2907 and XLF 27.99 since they will tell the story when the opening bell rings. Also, monitor the futures. If the S&P's are +3 or higher, that will hint that the bulls are going to rock and roll. Otherwise, the bears may stay in control. Keybot prints a pre-scheduled number tomorrow morning.

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

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

9/13/18; 3:11 PM EST = +68; signal line is +61 but algorithm remains short

9/13/18; 11:17 AM EST = +84; signal line is +61 but algorithm remains short

9/13/18; 10:30 AM EST = +68; signal line is +61 but algorithm remains short
9/13/18; 9:36 AM EST = +84; signal line is +61 but algorithm remains short
9/12/18; 3:06 PM EST = +68; signal line is +60 but algorithm remains short

9/12/18; 11:44 AM EST = +54; signal line is +61

9/12/18; 11:36 AM EST = +68; signal line is +62 but algorithm remains short

9/12/18; 10:13 AM EST = +54; signal line is +62

9/12/18; 10:06 AM EST = +68; signal line is +63 but algorithm remains short

9/12/18; 6:20 AM EST = +54; signal line is +63

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