STOCK MARKET BULLISH -- LONG -- CAUTION

Keybot the Quant remains long as the bulls spend another day slapping the bears around. The robot remains active spitting out 8 numbers on Monday. The bulls remain in control with the algo number 33 points above the signal line. This may sound like a lot but interestingly, the whole shooting match will be dictated by the utilities.

Utes pop on the lower Treasury rates. Stocks and bonds both are bot (note and bond prices are bid higher sending yields lower), as is the case for over 11+ years, due to the non-stop Federal Reserve and other global central banker largess. If yields sneak higher, utes will retreat.

Bulls need stronger commodities to keep the upside party going; it is the last of the major sectors that needs to turn bullish to maintain the stock market joy. Bulls need GTX above 1698 and stocks will explode higher.

Bears need to keep commodities in check while at the same time stabbing utes and the NYA Index. Bears need UTIL under 840 and the NYA under 12632 as fast as possible. Both parameters launched higher yesterday on the bullish euphoria. The NYA needs to lose a couple hundo points, say -1.5%, to create broad stock market negativity.

UTIL is at 847. Utilities will tell the story going forward. If UTIL remains above 840 this week, the bulls will win and stocks will remain elevated. If this occurs, watch the 902 level since UTIL will need to be there next week to keep the upside party going. If UTIL drops below 840, look out, since the stock market may begin falling like a rock. If this occurs, watch the 763 level since UTIL will need to be below this number in a couple weeks. If UTIL cannot sink below 763 over the next couple weeks, the bears will have no downside strength. If UTIL begins trending lower, taking out 763, the stock market may crash. If UTIL teases and jogs along the 840-ish level, that is likely indicating that the robot wants to flip short although the SPX will also need to drop below 3196.

Keeping it simple, watch UTIL 840. If price remains above, the bulls will keep the stock market elevated. If 840 fails, stocks will likely fall apart and Keybot may flip short if SPX 3196 is lost. For now, the caution flag remains out. If UTIL loses 840, consider the imminent turn to the downside to be in play.

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

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

6/8/20; 12:51 PM EST = +53; signal line is +20

6/8/20; 12:47 PM EST = +37; signal line is +18

6/8/20; 12:34 PM EST = +21; signal line is +17

6/8/20; 12:31 PM EST = +37; signal line is +16

6/8/20; 11:52 AM EST = +53; signal line is +14
6/8/20; 11:32 AM EST = +37; signal line is +12

6/8/20; 10:59 AM EST = +53; signal line is +9

6/8/20; 10:57 AM EST = +37; signal line is +6

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