STOCK MARKET BEARISH -- SHORT -- CAUTION

Keybot the Quant remains short as the new week of trading begins. The bears are in charge but the algo number is only 12 points below the signal line, hence the caution flag is out. S&P futures are tanking -90 points as this post is written 5-1/2 hours before the opening bell for the regular US Monday trading session. The bears are growling.

Bears need the SPX to lose the 3002-3006 level and it appears on tap if the futures hold. This failure opens the door to carnage and misery for stocks. Bears need weaker banks and for the XLF to drop below 23.35. Watch this closely. If stocks sell off heavy, and the XLF fails the 23.35 bull-bear line in the sand, stocks will be collapsing. If equities sell off heavy, and the XLF remains above 23.35, the dip-buyers are entering the stock market and will stabilize the situation and try to begin a relief rally.

Bulls need lower volatility. The central banks are trying to keep the VIX beachball underwater to support stocks, and the wealthy class, but splurt, the ball slips away and jumps higher out of the water sending futures and stocks lower. Chairman Powell needs to place some pine tar on his hands. Bulls need VIX below 35.60 which seemed achievable after the closing price of 36 and change for the weekend. However, after about an hour of trading thus far this week, the VIX pops to 43.15 so now the bulls have a lot of work to do to harness the VIX beachball and drag it lower underwater again. Bulls got nothing until they move the VIX sub 35.60.

Watch SPX 3002-3006 and XLF 23.35 to gauge the strength of the selloff once stocks begin trading in the states. Keybot prints one pre-scheduled number this week on Wednesday morning. The beat goes on.

6/21/20; 7:00 PM EST =

6/17/20; 9:00 AM EST =

6/14/20; 7:00 PM EST = -7; signal line is +5

6/12/20; 2:31 PM EST = -7; signal line is +7