STOCK MARKET BEARISH -- SHORT -- CAUTION

Keybot the Quant remains short as the new week of trading is off and stumbling. The SPX is up +0.5% to 3232. UTIL is down at 814. Bulls must push UTIL above 824 or they got nothing. NYA is 12527. Bears must push NYA below 12453 or they got nothing. Keybot is starting to track the banks. Watch XLF 23.55. Price is at 24.03. Stocks will be noticeably dropping if XLF loses 23.55.

It appears it is a battle between the utes and NYA index. Two enter the cage match but only one will exit. Bears are beating utes with a baseball bat and are now running after the NYA to do it harm. Bulls are hoisting the NYA on their shoulders to carry it away from danger while at the same time trying to pull utilities to higher ground. One of them will flinch. Watch the banks since their directional movement will impact stock market direction currently.

If UTIL moves above 824, and the SPX moves above 3237 heading higher, Keybot will likely flip long. Consider the imminent turn to the long side to be in play if UTIL moves above 820 running towards 824. Bears are okay as long as they maintain weakness in utes and begin to drag the NYA and XLF lower. Stocks may be in a holding pattern until the Federal Reserve visits the mountaintop on Wednesday and brings the tablets down from on high telling global traders how to trade.

7/28/20; 10:00 AM EST =

7/27/20; 9:36 AM EST = +40; signal line is +46

7/26/20; 7:00 PM EST = +26; signal line is +46