STOCK MARKET BEARISH -- SHORT

Keybot the Quant remains short. The quant continues to be active this week printing three numbers thus far today. Stocks were still joyous after yesterday afternoon but negative news on the coronavirus sends equities lower today. You saw that commodities and copper remain weak, so you knew stocks would roll back over to the downside. The bears are in control with the algo number 19 points below the signal line.

Volatility spikes higher with the VIX poking above the critical 13.58 level now at 14.14. Volatility pops so stocks drop. The bears are growling today; it is not overwhelming, but they are taking a bite of bull flesh and nibbling on it.

Bulls need VIX below 13.58 pronto to stop the stock market selling. Bulls must also push copper and commodities higher if they want to take the stock market higher.

Bears need weaker retail stocks and banks to begin accelerating the stock market south. Bears need RTH below 120.00 and/or XLF under 30.31. Either one failing into the bear camp will create immediate sickness in stocks with a big leg lower. The other parameter will quickly follow and stocks would likely fall apart.

The battle lines are drawn. Bulls need lower volatility and higher copper and commodities. Bears need to sustain higher volatility while punching the retail stocks and banks in the face. Bulls will cheer if they can get the VIX back below 13.58. Bears win going forward if the VIX remains above 14 climbing higher. No doubt the central banks are in there right now.

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

1/24/20; 11:24 AM EST = +56; signal line is +75
1/24/20; 11:04 AM EST = +70; signal line is +76

1/24/20; 10:35 AM EST = +56; signal line is +75

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

Note Added 1:38 PM EST: The banks are failing causing the drastic dips in the stock market. XLF came down to kiss the 30.31 level that Keybot called out ahead of time, and bounced, now it rolled over again and is coming back down for another look. XLF is at 30.33 only 2 points in the bull camp. If XLF fails at 30.31, you will see a big flush lower in the stock market. It is ony pennies away. The bulls must hold the line at XLF 30.31 and prevent it from failing. The drama continues..... it is in the bank's hands now ........ 30.35 .... 30.33 .....30.32........ ho, whoa, ho, here's 30.31, this tells you the fate of the stock market for the remainder of the day.........bounce or die......