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

Keybot the Quant remains long as the strange price action continues. It has been a long time since the algo has wanted to go long tick after tick but is held back by the internal parameters not fully latching. In a nutshell, SPX price needs to move up into the 2908-2914 range and higher to prove that the upside is real and flip Keybot to the long side. The turn appears imminent. The algo number is 20 big points above the signal line so the bulls have the strength available but it is odd that the S&P 500 price continues stalling.

The bulls receive juice from the recovery in the semiconductors. Banks also rallied on Friday providing stock market joy. The bears cling on to weak copper as the major drag on the stock market. Bulls need stronger copper. Bears need lower chips, banks and commodities and higher volatility.

The bulls should be able to move the stock market higher with the chips in their camp. The bears need SOX below 1365.25 and VIX above 13.15. Keybot prints a pre-scheduled number on Wednesday morning.

9/23/18; 7:00 PM EST =
9/19/18; 9:00 AM EST =

9/16/18; 7:00 PM EST = +84; signal line is +64 but algorithm remains short

9/14/18; 10:00 AM EST = +84; signal line is +63 but algorithm remains short

9/14/18; 9:36 AM EST = +84; signal line is +62 but algorithm remains short

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