STOCK MARKET BEARISH -- SHORT -- CAUTION

Keybot the Quant remains short. The quant prints six numbers yesterday. The battle was with volatility. The VIX comes down and fails at the 25.37 which causes the rally yesterday afternoon but as the day ended, the VIX fails into the bear camp again closing at 25.34 at Keybot's bull/bear line in the sand called out yesterday morning. Have you ever seen numbers called out in the stock market before they occur? No, you haven't, only here. Keybot is a smart robot.

The algo is tracking VIX 25.30 as the key bull/bear line in the sand this morning and the VIX is trading currently at 26 favoring the bears. S&P futures are down -25. Bears are fine as long as the VIX remains above 25.30. If the VIX drops below 25.30, the bulls are staging a big comeback and stocks will be rallying.

Bears need RTH below 155.51 and UTIL below 827 to create market mayhem. If either fail, you will see a downdraft in equities. If both fail, it will be a healthy flush lower for the stock market, especially if utilities fail. If UTIL loses 827, markets will likely take on a very negative posture going forward. The beat goes on.

1/10/21; 7:00 PM EST =
1/8/21; 9:00 AM EST =
1/5/21; 3:59 PM EST = +53; signal line is +65
1/5/21; 3:55 PM EST = +67; signal line is +65 but algorithm remains short
1/5/21; 3:22 PM EST = +53; signal line is +66
1/5/21; 3:10 PM EST = +67; signal line is +66 but algorithm remains short
1/5/21; 2:59 PM EST = +53; signal line is +67
1/5/21; 2:06 PM EST = +67; signal line is +67 but algorithm remains short
1/4/21; 1:16 PM EST = +53; signal line is +67

Note Added 4:24 AM EST: VIX comes down to 25.35. The bulls are fighting back. The Fed places its jackboots on the throat of volatility, as usual, to keep the stock market elevated and protect the privileged class that own large stock portfolios. VIX 25.30 is for all the marbles. It tells you stock market direction today.