STOCK MARKET BEARISH -- SHORT -- CAUTION

Keybot the Quant remains short with the algo number 6 points below the signal line. Keybot was active in the Monday session printing four numbers. Commodities, copper and volatility control stock market direction currently. Commodities are in the bear camp with copper and volatility in the bull camp. One of these will flinch and tell you the direction ahead.

Stock market bulls need to push GTX (commodities) above 2445 (now at 2432) which will create stock market upside, position Keybot to flip long and signal the all-clear for new record highs ahead.

The bears must keep GTX in the bear camp while at the same time sending CPER (copper) below the 16.61 palindrome (now at 16.62 only one measly penny above) and/or the VIX above 15.11 (now at 14.73). Copper futures are down -0.5%. Houston, we have a problem. Copper representative CPER will fail at the opening bell if this price action remains in place.

S&P futures are up +5 which is surprising since copper is failing. The VIX popped above 15.11 yesterday for a short time which corresponded to the lows in the S&P 500. If the VIX moves above 15.11, it is lights-out for stocks.

Do not forget to watch the utilities closely. Bears need UTIL to fall below 832-ish this week (now at 845) which will create market carnage. If the bulls can keep UTIL elevated and keep the bears at bay, next week the bears only need to push UTIL below 845 to create stock market mayhem and misery (and price is here now).

Thus, bulls need stronger commodities. Bears need weaker copper, which they are receiving this morning, and higher volatility. The VIX is a hair lower in today's trade now at 14.80 (the VIX begins trading at 3 AM EST). With the copper failure on tap, futures should be lower not higher. The bulls may be trying to goose commodities behind the scenes to counteract the negativity of copper collapsing.

This is an important juncture. The bears have it on a silver platter if they want it. They took the VIX above 15.11 yesterday and were holding a strong stock market selloff in their furry paws but the bulls slapped it away jamming vol lower to stage a slight recovery in equities as the session played out. The beat goes on.

12/8/19; 7:00 PM EST =
12/6/19; 10:00 AM EST =

12/6/19; 9:00 AM EST =

12/2/19; 11:25 AM EST = +74; signal line is +80
12/2/19; 11:11 AM EST = +60; signal line is +80
12/2/19; 10:07 AM EST = +74; signal line is +80
12/2/19; 9:36 AM EST = +88; signal line is +81 but algorithm remains short
12/1/19; 7:00 PM EST EOM = +74; signal line is +81