STOCK MARKET BEARISH -- SHORT -- CAUTION

Keybot the Quant is on the short side with copper and commodities providing the double-barreled bear power. News reports in the afternoon downplay the coronavirus so traders strip off their face masks and shun the antibacterial soap and begin buying stocks like madmen. Copper and commodities remain weak. Bulls need to push CPER above 17.36 (now at 17.14) and GTX above 2510 (now at 2458) to regain control of the stock market.

The bears are in control with the algo number 6 points below the signal line. Bears need to keep copper and commodities in the bear camp while pushing volatility higher. The Fed has their footprint all over the VIX today jamming it lower to pop equities. Bears need VIX above 13.58 (now at 12.98). Isn't it a nice touch that the market makers painted the VIX with a 12-handle?; like putting lipstick on a pig.

The battle lines are set in stone. Bulls win with higher copper and commodities. Bears win with higher volatility. Who will win? Watch the copper futures overnight and the VIX begins trading at 3 AM EST which will provide an early heads-up on the way forward.

If GTX or CPER turns bullish, either one would do, consider the imminent turn to the long side to be in play, and then if the SPX is trading above 3327 and trending higher, Keybot would likely whipsaw back to the long side. As copper goes, so goes the market. Tomorrow, Friday, we see what the bears are truly made of; the ball is in their hands.

1/26/20; 7:00 PM EST =

1/23/20; 1:25 PM EST = +70; signal line is +76

1/23/20; 1:06 PM EST = +56; signal line is +75