STOCK MARKET BEARISH -- SHORT -- CAUTION

Keybot the Quant flips bearish at SPX 3254 this afternoon. The whipsaw carnival continues. The bears are in charge with the algo number 51 points below the signal line. The stock market deteriorated in the afternoon as many parameters fell like dominoes one after another. Volatility pops so stocks drop, utilities failed ushering in negativity, then retail stocks collapsed, then the chips were down, literally and figuratively as the dirty SOX became soiled, and then the piece de resistance, as some would say the piece of resistance, copper failed. That carnage provides a -79 point down day on the S&P 500; a -2.4% bloodbath.

The utility failure is serious business. UTIL loses the 793 level and the algorithms started executing sell programs. UTIL ends the day at 785. Bulls must push UTIL back above 793 immediately, otherwise, the stock market will remain soggy. For next week, the 793 number is meaningless and replaced with 770.61. Thus, watch UTIL at 4 PM EST on Friday because that will give you a heads-up about next week. If UTIL finishes the week above 771, the bulls are hanging in there for next week. If UTIL ends this week below 771, there will be Hell to pay come Monday.

There are a lot of moving parts currently so it is difficult to sum things up into something simple for yinz to watch but keep an eye on NYA 12306-12307. It is for all the marbles. NYA price is at 12359; if 12306 fails, turn out the lights the party is over. Stocks will plummet into Hades. Bulls will hang in there going forward as long as they keep NYA above 12306.

On the last trade, that only lasted about 5 hours, another whipsaw, the algo program and actual trading both lose about a percent. For the year, the SPX is up not even one percent. The quant program is up about +22% on the year and the actual trading generated by Keybot is up about +40% in 2020 thus far. Keybot exits SPY and enters SH remaining in 1x ETF's to lessen risk in choppy whipsaw markets.

9/27/20; 7:00 PM EST =
9/23/20; 3:10 PM EST = -58; signal line is -7
9/23/20; 3:08 PM EST = -42; signal line is -5
9/23/20; 2:49 PM EST = -26; signal line is -3; go short 3254; (Benchmark SPX for 2020 = +0.7%)(Keybot algo this trade = -0.9%; Keybot algo for 2020 = +22.3%)(Actual trading results this trade = -0.7%; Actual trading results for 2020 = +39.6%)
9/23/20; 2:21 PM EST = -10; signal line is -1 but algorithm remains long
9/23/20; 1:58 PM EST = +6; signal line is 0
9/22/20; 1:18 PM EST = +20; signal line is +1
9/22/20; 12:52 PM EST = +6; signal line is +1
9/22/20; 12:07 PM EST = +20; signal line is +2
9/22/20; 11:24 AM EST = +6; signal line is +2
9/22/20; 11:01 AM EST = -10; signal line is +3 but algorithm remains long
9/22/20; 10:46 AM EST = +6; signal line is +4
9/22/20; 10:22 AM EST = +34; signal line is +5
9/22/20; 10:21 AM EST = +20; signal line is +5
9/22/20; 9:52 AM EST = +6; signal line is +5
9/22/20; 9:36 AM EST = +20; signal line is +6
9/21/20; 3:59 PM EST = +6; signal line is +6; go long 3282; (Benchmark SPX for 2020 = +1.6%)(Keybot algo this trade = -0.9%; Keybot algo for 2020 = +23.2%)(Actual trading results this trade = -1.2%; Actual trading results for 2020 = +40.3%)