STOCK MARKET BULLISH -- LONG

Keybot the Quant remains long. The US and China announce a trade deal agreement but comically, nothing is in writing. Prime Minister Johnson maintains power after the UK elections creating a positive vibe around the world. S&P futures are up +13 with the VIX tumbling lower to 12.93.

The quant did not print any numbers yesterday. The bulls are cruising along with the algo number 36 points above the signal line. The Fed wine is flowing like water. The algo is tracking volatility, retail stocks, commodities and utilities as the key drivers of stock market direction currently.

Bears need higher volatility; the VIX above 15.18 (now at 12.93). Bears need RTH below 118.05 (now at 119.70). Bears need GTX below 2459 (now at 2529).

Utilities are providing drama. As previously mentioned, the utes are of uber importance going forward. UTIL is at a critical bounce or die decision at the 20-week MA. If utilities begin rallying higher again, the stock market bulls will be celebrating into early 2020 with more record highs. However, if utilities trend lower from here, that forecasts doom and gloom for the broad stock market for months, perhaps years forward.

UTIL is at 849.68 only about 4 points from the important 845.52 bull-bear line in the sand number. If UTIL loses the 845.52 level today, the stock market will begin rolling over and dying. For next week, the UTIL bull-bear line in the sand number is 848.30 (the 845.52 number becomes meaningless). Thus, watch utes very closely today and especially at the 4 PM EST closing bell. If UTIL ends today below 848.30, which is only about a buck away, the stock market is in serious trouble going forward. If UTIL ends today above 848.30, the bulls are fine and look forward to more upside equity joy next week.

If either volatility, retail stocks, commodities, or utes fall into the bear camp, any one would do, the upside move in US stocks will stop and the caution flag will be out. If 2 of the 4 turn bearish, the imminent turn to the short side for Keybot will likely be on the table. If 3 or all 4 of the parameters turn bearish, the stock market will be collapsing lower. If all four parameters remain in the bull camp, traders will be drinking Fed whiskey, ECB champagne, BOJ sake and PBOC rice wine into the weekend and buying stocks with reckless abandon.

12/15/19; 7:00 PM EST =

12/11/19; 3:59 PM EST = +88; signal line is +52