STOCK MARKET BULLISH -- LONG -- CAUTION; Keybot the Quant Tags Maximum +100 Reading; Federal Reserve Papers-Over Housing Recession

Keybot the Quant remains long as the stock market circus plays on. Keybot prints the maximum +100 number which is astonishing. The only way that would happen is if the housing data reported blow-out ridiculous numbers--and this occurs. The quant has identified a housing recession in progress since last July. The Fed is not stupid. They saw the same trouble coming and with the liquidity event occurring in September, the Fed started printing money like madmen to save the day. The central bank succeeded in papering-over the housing recession that was set to begin in earnest. The easy money delays the housing recession signal for a couple-few months but it will probably roll back over again.

This development is profound since that housing recession and housing recovery tool is a very long period indicator and never backpedals; until now. This behavior verifies the power of the Federal Reserve. The QE program during Q4 into 2020 boosts the stock market and pumps the economy out of its malaise-of-no-return it was about to fall into. These are not your grandfather's markets. It's all sick central bank stuff all the time.

The S&P 500 prints a new all-time record high 3329.88 and new all-time closing high at 3329.62 on Friday, 1/17/20. The bulls are unstoppable.

The bulls goosed utilities in mid-December and last week which creates the parabolic price move higher in the stock indexes. That drama was described as it occurred over the last month. So the stock market bulls are feeling pretty good now. The wine is flowing like water and any stock with a heartbeat is moving higher.

Bears need higher volatility and lower commodities if they want to reverse the market euphoria. One thing the bears may find solace in is that the +100 number has no possible direction to go in except down. The bulls are in charge of the stock market with the algo number 24 points above the signal line. The bulls are cruising so the imminent turn notation is removed, for now, however, the caution flag remains out.

Epic and historic economic and market history is being written in real-time. The price action is very erratic and unstable. Markets are closed on Monday for Dr Martin Luther King Jr Day, or MLK Day, which provided buoyancy to stocks to end the week. Just think, the stock market may be on the precipice of a significant and historic event occurring on Tuesday or the days following. Keybot the Quant has been long the stock market since 12/4/19.

1/19/20; 7:00 PM EST =
1/17/20; 10:00 AM EST = +100; signal line is +76

1/17/20; 9:00 AM EST = +100; signal line is +76

1/14/20; 3:59 PM EST = +88; signal line is +75