STOCK MARKET BULLISH -- LONG -- CAUTION -- TURN MAY BE IMMINENT

Keybot the Quant remains long as the epic stock market party continues. Traders are drinking Fed wine and buying stocks with reckless abandon. Life is a party. However, Keybot continues champing at the bit to go short all week long! The algo number is 5 points below the signal line but the internal parameters will not yet fully latch to permit the move to occur. This is unprecedented action; the quant has never exhibited this behavior before in its long history.

The algo did not print any numbers in the Thursday session. It was another bull party with the SPX printing a new all-time high at 3275.58 and a new all-time closing high at 3274.70. The 3276 is the highest number ever printed in stock market history.

If the SPX drops below 3264, Keybot will likely flip short, hence the imminent turn notation in the title line. The SPX begins the Friday regular session at the record closing high at 3275. S&P future are up +9 so the bulls have their chests puffed-out again to end the week. However, the US Monthly Jobs Report hits before the opening bell and can move markets one way or the other.

Bulls need higher utilities; it will verify the upside rally in equities. If utes do not rally, the move higher in stocks is likely in jeopardy. Bulls need to push UTIL above 876.46 (now at 873) today to create strong stock market joy. By 4 PM EST today, UTIL must be up above 880.50, otherwise, stocks are in serious trouble for next week. If the bulls create joy in the utilities it tells you that the market upside likely has more legs. If utes stall here, sputter, and roll over, that tells you very serious trouble may be on the way for the days and weeks ahead for US equities.

Bears will receive downside strength with VIX above 14.05, RTH below 119.38, CPER below 17.20 and/or GTX below  2511, higher volatility, weaker retail stocks, copper and commodities, respectively. The degree that any of these four parameters turn bearish corresponds to how far the stock market would drop. Commodities are in a big retreat this week. Bulls only need higher utilities to claim the victory prize.

1/12/20; 7:00 PM EST =

1/10/20; 9:00 AM EST =

1/8/20; 7:50 AM EST = +72; signal line is +77 but algorithm remains long