STOCK MARKET BULLISH -- LONG -- CAUTION

Keybot the Quant flips back to the bull side on Friday afternoon at SPX 2858. The choppy price action continues. Chop suey. The bulls are in control but the algo number is only 7 points above the signal line. The three key parameters controlling broad stock market direction currently are copper, volatility and chips. The bulls jammed the VIX lower, which is the Fed's jackboots on the throat of volatility, to pump stocks higher and it worked. Chips and volatility are in the bull camp creating the upside juice and the bulls are now gunning for copper.

Bulls need CPER above 14.92 (now at 14.85). Copper futures are higher out of the gate this evening. Bears need either the VIX above 32.49 (now at 31.89) and/or SOX below 1666 (now at 1701); the infamous trip 6's. Since volatility was the last parameter that caused the algo to flip long, watch VIX 32.49 like a hawk. If the VIX jumps back into the bear camp, the bears likely still need a 47-point drop in the SPX to get the model to flip short. Simply watch the direction of copper, volatility and semiconductors since that tells you the direction of the stock market.

On the last trade, a day and one-half trade, the algo program gains a half percent and the actual trading gains +1.3% due to the drop in small caps. For the year thus far, the S&P 500 is down -12% and the actual trading generated by Keybot is down -4%. The whipsaw moves are chewing up bulls and bears. Keybot exited RWM and entered IWM.

Keybot prints a pre-scheduled number on Tuesday morning. Markets are closed for Memorial Day, next Monday, a week from now, on 5/25/20. S&P futures catapult +22 points higher on Sunday evening in the states. Oil is up +3%. Copper +0.8%. Watch copper.

5/24/20; 7:00 PM EST =

5/19/20; 9:00 AM EST =

5/17/20; 7:00 PM EST = -39; signal line is -46

5/15/20; 2:02 PM EST = -39; signal line is -46; go long 2858; (Benchmark SPX for 2020 = -11.5%)(Keybot algo this trade = +0.4%; Keybot algo for 2020 = +2.6%)(Actual trading results this trade = +1.3%; Actual trading results for 2020 = -3.8%)

5/15/20; 1:06 PM EST = -39; signal line is -46 but algorithm remains short

5/15/20; 10:28 AM EST = -53; signal line is -46

5/15/20; 10:17 AM EST = -39; signal line is -46 but algorithm remains short

5/15/20; 10:00 AM EST = -53; signal line is -45
5/15/20; 6:02 AM EST = -53; signal line is -44

5/15/20; 3:15 AM EST = -39; signal line is -43 but algorithm remains short

5/14/20; 10:44 AM EST = -53; signal line is -43

5/14/20; 9:54 AM EST = -69; signal line is -43

5/13/20; 10:58 AM EST = -53; signal line is -42

5/13/20; 5:13 AM EST = -39; signal line is -42 but algorithm remains short

5/13/20; 5:03 AM EST = -53; signal line is -42

5/13/20; 4:21 AM EST = -39; signal line is -41 but algorithm remains short

5/12/20; 3:59 PM EST = -53; signal line is -41; go short 2870; (Benchmark SPX for 2020 = -11.2%)(Keybot algo this trade = -0.6%; Keybot algo for 2020 = +2.2%)(Actual trading results this trade = -0.4%; Actual trading results for 2020 = -5.1%)