STOCK MARKET BEARISH -- SHORT

Keybot the Quant remains short as the market turmoil continues. Chips and banks failed out of the gate this week so the stock market collapsed. A relief rally occurs on Tuesday but the bears remain in control with the algo number 31 points below the signal line. Keybot is active this week printing 9 numbers during the first 2 sessions.

The bulls need stronger chips, banks and retail stocks to stop the market carnage. Bulls need SOX above 1474 (now at 1442) and XLF above 27.63 (now at 27.11). If either parameter turns bullish, the caution flag will be out since the quant may be positioning itself to flip to the long side. If both turn bullish, the imminent turn to the long side will be in play.

The bears simply need to keep the semiconductors and banks negative while sending the NYA below 12528 (now at 12628) and the stock market selling will continue.

The stock market will chop along sideways if the chips and banks remain negative and the NYA positive. 1 of these 3 parameters will flinch and immediately tell you the path ahead for the stock market.

8/11/19; 7:00 PM EST =

8/6/19; 1:05 PM EST = -4; signal line is +27

8/6/19; 12:53 PM EST = -18; signal line is +29
8/6/19; 11:53 AM EST = -4; signal line is +32
8/6/19; 11:16 AM EST = -18; signal line is +35
8/6/19; 9:36 AM EST = -4; signal line is +37
8/5/19; 1:50 PM EST = -18; signal line is +40
8/5/19; 1:12 PM EST = -4; signal line is +44
8/5/19; 1:00 PM EST = -18; signal line is +47
8/5/19; 9:36 AM EST = -4; signal line is +49
8/4/19; 7:00 PM EST = +12; signal line is +52