STOCK MARKET BULLISH -- LONG -- CAUTION -- TURN MAY BE IMMINENT

Keybot the Quant remains long as the choppy whipsaw slop continues. The robot is champing at the bit to go short but the internal parameters will not yet latch to permit the move. It is ridiculous and very odd behavior but what else is new in these markets?

The bears want to be in charge with the algo number 23 points below the signal line but the bulls will not give up the ball. Bears need the SPX to dop below 5991, and Keybot the Quant will likely flip short. It is that simple. SPX starts at 6038 so bears need to see a 47-point drop to take control. Just like a couple days ago, bears do not want a gap-down open since that will delay the move to the short side or, like the other day, end up without the model flipping short. Bears need a nice slow steady move lower in the SPX and for it to drift down to 5991 and fail.

The bulls rally today despite the quant signaling sogginess. Stocks rallied because XRT moved above the key 79.79 bull/bear line in the sand but by the close it fell back below creating market negativity. The VIX line in the sand is 16.85 and price was teasing this level all day long today finishing above at 17.21 creating stock market negativity.

The stock market selling will slow and equities will start to stabilize if XRT moves above 79.79 and/or VIX falls below 16.85. The quant likely needs to see both parameters flip bullish to prove that the stock market selling is over and stocks will rally higher again.

The stock market will be in trouble if the two metrics remain bearish, and if the SPX falls below 5991, equities will fall like rocks as the quant likely flips short. Bulls need stronger retail stocks and lower volatility while bears need SPX 5991. Tiger In Your Tank.

2/9/25; 7:00 PM EST =
2/7/25; 10:00 AM EST =
2/7/25; 9:00 AM EST =
2/4/25; 2:44 PM EST = +0; signal line is +23 but algorithm remains long
2/4/25; 2:11 PM EST = +16; signal line is +24 but algorithm remains long
2/4/25; 1:31 PM EST = +0; signal line is +25 but algorithm remains long
2/4/25; 12:46 PM EST = +16; signal line is +27 but algorithm remains long
2/4/25; 12:30 PM EST = +0; signal line is +28 but algorithm remains long
2/4/25; 11:36 AM EST = +16; signal line is +29 but algorithm remains long
2/3/25; 9:36 AM EST = +0; signal line is +30 but algorithm remains long
2/3/25; 3:06 AM EST = +16; signal line is +32 but algorithm remains long
2/2/25; 7:00 PM EST EOM = +30; signal line is +33 but algorithm remains long
1/31/25; 3:52 PM EST = +30; signal line is +33 but algorithm remains long