Keybot the Quant remains long as Santa is in the rearview mirror and the Christmas cookies grow stale. The bulls are in charge with the algo number 15 points above the signal line. Sectors and market metrics are bullish across the board celebrating the seasonal joy and keeping the robot long. However, there is one fly in the ointment. Utilities.
Utilities tell the tale for the stock market in the days ahead. UTIL 1088.89, call it 1089 and 1060.80, call it 1061, are two key bull/bear lines in the sand that dictate stock market direction currently. UTIL price will begin the new week of trading, the last 3 trading days of 2025, at 1070. This is the battle that will dictate who wins.
UTIL is at 1070 in the middle of 1089 and 1061. Thus, it is causing both bearishness and bullishness in the stock market that cancels each other out. For the bulls to continue to print record highs, they must push UTIL above 1089 asap (as soon as possible) and it will be wine and roses into the new year with nothing but blue skies, rainbows and unicorns.
If UTIL drops below 1061, a trap-door opens and the stock market will drop like a rock with other metrics then starting to join the negativity. If UTIL loses 1061, and the SPX drops below 6922 trending lower, Keybot the Quant will likely flip short. The bears can take it if they want it. Consider the imminent turn to the short side to be in play if UTIL loses 1061.
If UTIL remains between 1061 and 1089 this week, the stock market will chop along with sideways slop. Keybot the Quant prints one prescheduled number in the new week on Wednesday to close out the year. 2026 trading begins on Friday. It will be interesting to see if the trap-door opens and if the stock market will be hung until dead. The Hangman's Song.
1/4/26;
7:00 PM EST =
12/31/25;
7:00 PM EST EOM EOQ4 EOY2025 =
12/28/25;
7:00 PM EST = +40; signal line is +25
12/23/25;
10:00 AM EST = +40; signal line is +25
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