STOCK MARKET BEARISH -- SHORT

Keybot the Quant remains on the short side as commodities join the bear camp providing additional negativity to the stock market. In addition, semiconductors collapse and the SOX teases the 1366.20 level that Keybot identifies as the bull-bear line in the sand. It is amazing how the algorithm can identify these levels before they occur. The SOX price bounced off this level during the afternoon. If it would have failed, the stock market would have been toast.

The bears are cruising with the algo number 18 points below the signal line. However, the US Monthly Jobs Report is on tap in the morning which may create a wild move up, or down, in the stock market. The bears need to push SOX below 1366.20 (now at 1366.35) which will create stock market carnage.

The bulls need the chips to recover higher which may occur considering the AVGO and MRVL earnings reports result in big gains for these tickers in late trading tonight. The bulls need GTX above 2709 (now at 2700) and/or VIX below 13.21 (now at 14.65). If either GTX or VIX turns bullish, consider the caution flag to be out. If both turn bullish, consider the imminent turn to be in play, and if the SPX then prints above 2892, Keybot will likely flip to the long side.

Note that the VIX closed at 14.65 only 2 pennies under the critical 14.67 level. VIX begins trading at 3 AM EST and this will immediately provide a hint as to what direction the stock market will move on Friday (stocks move inversely to volatility). Bulls need the VIX to remain under 14.65 and head lower below 13.21. Bears need the VIX to pop above 14.67 and they will begin slapping the bulls silly. The stage is set for Friday's drama. Keybot prints a pre-scheduled number before the opening bell.

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

9/7/18; 9:00 AM EST = 

9/6/18; 11:16 AM EST = +56; signal line is +74

9/5/18; 3:06 AM EST = +70; signal line is +75