STOCK MARKET BEARISH -- SHORT -- CAUTION

Keybot the Quant flips to the short side yesterday afternoon at SPX 2629. Copper and chips are smacked lower and volatility higher creating a trio of pain for bulls. The bears are in charge of the stock market with the algo number 17 points below the signal line.

Retail stocks and banks are supporting the stock market on the bull side but they have rickety feet, skinny arms and thin shoulders. Bears need RTH under 98.13 and XLF under 25.13 to automatically create more downside carnage in the stock market.

The stock market bulls need stronger chips and utilities and lower volatility, SOX above 1194.30, UTIL above 711.23 and VIX below 19.58, respectively. It appears that Keybot likely needs 2 of these 3 parameters to turn bullish for the stock market to restart the upside path.

The benchmark S&P 500 is up +5% this year. The Keybot algorithm turns positive on the year up +1%. The actual trading triggered by Keybot is also in the green up +1.7% this year. The algorithm exited SSO and entered DXD. The drama continues. 

1/27/19; 7:00 PM EST =

1/22/19; 3:59 PM EST = -20; signal line is -3

1/22/19; 2:16 PM EST = -36; signal line is -2

1/22/19; 1:06 PM EST = -20; signal line is -1

1/22/19; 1:04 PM EST = -4; signal line is -1; go short 2629; (Benchmark SPX for 2019 = +4.9%)(Keybot algorithm program this trade = +2.9%; Keybot algo for 2019 = +1.0%)(Actual results this trade = +5.8%; Actual trading results for 2019 = +1.7%)

1/22/19; 12:31 PM EST = -4; signal line is -2 but algorithm remains long

1/22/19; 9:36 AM EST = +10; signal line is -2

1/20/19; 7:00 PM EST = +26; signal line is -4

1/18/19; 10:26 AM EST = +26; signal line is -7

1/18/19; 10:00 AM EST = +10; signal line is -9

1/17/19; 11:38 AM EST = +10; signal line is -10

1/17/19; 11:28 AM EST = -6; signal line is -11

1/17/19; 11:02 AM EST = +10; signal line is -11

1/17/19; 9:36 AM EST = -6; signal line is -12

1/17/19; 8:08 AM EST = +10; signal line is -12

1/17/19; 7:20 AM EST = -4; signal line is -14

1/17/19; 5:16 AM EST = +10; signal line is -14

1/17/19; 4:39 AM EST = -4; signal line is -15

1/17/19; 4:00 AM EST = +10; signal line is -15

1/17/19; 3:06 AM EST = -4; signal line is -16

1/16/19; 9:36 AM EST = +10; signal line is -16

1/14/19; 11:39 AM EST = -6; signal line is -18

1/14/19; 10:22 AM EST = -20; signal line is -19 but algorithm remains long

1/14/19; 10:15 AM EST = -6; signal line is -20

1/14/19; 9:50 AM EST = -20; signal line is -21

1/14/19; 9:37 AM EST = -36; signal line is -22 but algorithm remains long

1/14/19; 9:36 AM EST = -20; signal line is -22

1/14/19; 3:06 AM EST = -4; signal line is -23

1/13/19; 7:00 PM EST = +10; signal line is -25

1/11/19; 12:21 PM EST = +10; signal line is -27
1/10/19; 11:10 AM EST = -4; signal line is -29
1/10/19; 10:28 AM EST = -20; signal line is -30

1/10/19; 10:14 AM EST = -36; signal line is -31 but algorithm remains long

1/10/19; 10:07 AM EST = -20; signal line is -31

1/10/19; 10:04 AM EST = -36; signal line is -32 but algorithm remains long

1/10/19; 9:38 AM EST = -52; signal line is -32 but algorithm remains long

1/10/19; 9:36 AM EST = -36; signal line is -31 but algorithm remains long

1/9/19; 1:37 PM EST = -20; signal line is -32

1/9/19; 12:54 PM EST = -4; signal line is -33

1/9/19; 12:07 PM EST = -20; signal line is -34

1/9/19; 11:07 AM EST = -4; signal line is -35

1/9/19; 10:58 AM EST = -20; signal line is -35

1/9/19; 10:50 AM EST = -36; signal line is -35 but algorithm remains long

1/9/19; 10:49 AM EST = -20; signal line is -35

1/9/19; 10:11 AM EST = -4; signal line is -35

1/9/19; 9:44 AM EST = -20; signal line is -37
1/9/19; 9:39 AM EST = -4; signal line is -37

1/8/19; 3:14 PM EST = -20; signal line is -38

1/7/19; 11:45 AM EST = -36; signal line is -38; go long 2555; (Benchmark SPX for 2019 = +1.9%)(Keybot algorithm program this trade = -1.9%; Keybot algo for 2019 = -1.9%)(Actual results this trade = -4.1%; Actual trading results for 2019 = -4.1%)