STOCK MARKET BEARISH -- SHORT

Keybot the Quant remains short with the algo number 25 points below the signal line. The bears are cruising along after the collapse of the chips sector last week. Throw the dirty SOX into the laundry basket. Retail stocks next turned sour creating the drop in the overall stock market.

For the week ahead, the quant is currently tracking RTH 206.00 and XLF 43.31 as the two key metrics controlling stock market direction. RTH, retail stocks, are creating negativity in the stock market while the XLF, banks and financials, are creating positivity in equities.

Bears need the banks to falter to start kicking in some serious downside in US stocks. Bears need XLF to fall below 43.31, that is -2.3% from current levels, to create market mayhem. The US stock market will fall apart if the banks fail so watch individual names such as BAC, where Warren Buffett is ditching shares, GS, WFC, C, the usual suspects, to see if they start dropping -2% or -3%. That would spell serious trouble ahead.

Bulls need stronger retail stocks to stop the downward slide in US stocks. Bulls need RTH above 206.00, that is +1.0% from current levels, to stabilize the stock market into a sideways pattern that stops the selling. Bulls will need further help, such as pumping copper and chips higher, and volatility lower, if they want to regain control of the stock market. This appears a difficult task right now but things can change fast.

If RTH remains below 206.00 and XLF above 43.31, the stock market will stagger sideways like a drunk at the honky-tonk last evening that had to be shown the door. I Like Austin, but I Love San Antone. Bulls win with stronger retail stocks while bears win with weaker banks.

Keybot prints a pre-scheduled number on Friday morning; Friday the 13th for the superstitious folks. 13's my lucky number, to you it means stay inside. Bad Luck. 

9/15/24; 7:00 PM EST =
9/13/24; 10:00 AM EST =
9/8/24; 7:00 PM EST = -14; signal line is +9
9/6/24; 9:36 AM EST = -14; signal line is +11
9/6/24; 9:00 AM EST = +2; signal line is +11
9/5/24; 12:40 PM EST = +2; signal line is +12
9/5/24; 12:20 PM EST = -14; signal line is +12
9/3/24; 2:04 PM EST = +2; signal line is +13; go short 5544; (Benchmark SPX for 2024 = +16.2%)(Keybot algo this trade = +0.4%; Keybot algo for 2024 = +6.2%)(Actual results this trade = +0.6%; Actual results for 2024 = +11.4%)