STOCK MARKET BULLISH -- LONG -- CAUTION

Keybot the Quant remains long as the epic price action continues in the stock market. The bulls remain in control with the algo number 18 points above the signal line. Keybot has been sleepy in recent days idling along without printing any numbers but Friday was a different story with a dozen numbers printing including the pre-scheduled number.

These are exciting times and the week ahead may be historic for markets. Have you been watching utilities specifically the UTIL 839 bull-bear line in the sand? Lots of drama there. Also with the NYA Index. Also commodities. These three parameters control the direction and fate of the stock market ahead.

Bulls need stronger utes and commodities to maintain the upside party in equities. Bulls need UTIL above 839-840 (now at 827). It is a game-changer for the year ahead if UTIL moves above 839-840 and remains above this month. If so, the stock market will remain elevated for the remainder of the year. If not, the stock market is going to likely get crushed as the year plays out. Watch UTIL 839-840 like a hawk; it is an extremely important number for the week ahead.

Bulls need GTX above 1703 (now at 1663). This is a commodity index; you can follow it on stockcharts.com under the $GTX symbol. More upside is guaranteed in the stock market if GTX moves higher.

Bears need to push the NYA Index lower. It is the bear's only hope to stop the stock market rally. Bears need NYA below 12632 pronto (now at 12641), otherwise they are cooked. The bulls will joyously keep stocks elevated through the end of the year if they keep NYA above 12632; watch it like a hawk. If NYA slips back below 12632 and remains below, it is likely over for the stock market going forward and massive selling will be on tap.

The caution flag is out since the price action is becoming dicey. The above 3 parameters dictate stock market direction forward. Pay attention to whether UTIL jogs above and below that bull-bear line in the sand at 839-840 and/or if NYA jogs above and below its bull-bear line in the sand at 12632. If these parameters take out the respective levels but then, say, after 10 or 20 minutes, flip back to the other camp, and then after another 10 or 20 minutes, flip back again, this jogging action tells you that the quant is likely getting ready to flip short.

One potential scenario to make for happy bears is if the NYA turns bearish, then if it jogs above and below the 12632 a couple-few times, and then if the SPX moves below 3164 and trends lower, Keybot would likely flip short. Of course, if UTIL or GTX takes out their bull-bear lines in the sand to the upside, it will be off to the races higher for equities.

Keybot prints a pre-scheduled number on Friday morning shortly after the opening bell. Watch UTIL 839-840, GTX 1703 and NYA 12632. Nothing else matters. Stay alert.

6/14/20; 7:00 PM EST =

6/12/20; 10:00 AM EST =

6/7/20; 7:00 PM EST = +21; signal line is +3

6/5/20; 3:59 PM EST = +21; signal line is +1

6/5/20; 3:48 PM EST = +7; signal line is -1

6/5/20; 12:12 PM EST = +21; signal line is -3

6/5/20; 11:57 AM EST = +37; signal line is -6

6/5/20; 11:43 AM EST = +21; signal line is -9

6/5/20; 11:36 AM EST = +37; signal line is -11

6/5/20; 10:48 AM EST = +21; signal line is -14

6/5/20; 10:33 AM EST = +7; signal line is -17

6/5/20; 10:10 AM EST = +21; signal line is -20

6/5/20; 10:02 AM EST = +7; signal line is -22

6/5/20; 9:36 AM EST = +21; signal line is -24

6/5/20; 9:00 AM EST = +7; signal line is -26
5/31/20; 7:00 PM EST EOM = +7; signal line is -28