STOCK MARKET BULLISH -- LONG -- CAUTION

Keybot the Quant remains long as the new year of trading begins tomorrow at SPX 6846. Utes, commodities and retail stocks are controlling stock market direction currently.

The bull/bear lines in the sand that the algorithm is tracking are UTIL 1088.89, UTIL 1062, GTX 3888 and XRT 84.97.

UTIL begins at 1068 below the key 1089, causing bearishness in the stock market, but is above the 1062, creating bullishness in the stock market. For next week, the 1089 is meaningless and replaced with 1114 so the bull's task becomes far harder. Utilities are going to need to rally strongly tomorrow to start making their way up above 11 hundo to 1114 to prove that the bulls can make new highs in the stock market. If UTIL collapses below 1062, all Hell will break loose in the stock market and a big drop lower would be on the come for equities.

GTX begins at 3916 not too far above the 3888 that assures bullish joy. Commodities, in general, need to drop about -1.6% to create stock market negativity.

XRT begins at 85.29 only about a percent away from the 84.97 line in the sand so pay close attention to retail plays such as Scamazon, Target on your back, and Walfart.

The XRT 84.97 and UTIL 1062 are the two metrics most at play currently. Stocks will chop sideways with a slight upward bias with the current status quo. Stocks will catapult higher if UTIL moves above 1089 or next week above 1114.

Stocks are in serious trouble if XRT loses 84.97 and/or if UTIL loses 1062. There will be blood and carnage on Wall Street. If either metric turns bearish, consider the turn to the short side to be in play, and if the SPX loses 6845 trending lower (only a point below where the SPX begins at 6846), Keybot the Quant will likely flip short.

The bears have it on a silver platter if they want it to begin the new year. As utilities and retail stocks go, so goes the US stock market.

The first full week of trading begins on Monday, 1/5/26. The Santa rally that runs from Christmas Eve through the first 2 trading days of this year is negative so it needs to do some catching-up tomorrow and Monday to turn positive, otherwise, there will be no Santa rally.

1/11/26; 7:00 PM EST =
1/9/26; 9:00 AM EST =
1/4/26; 7:00 PM EST =
1/1/26; Begin 2026 Data = +40; signal line is +25; go long 6846; (Benchmark SPX for 2026 = +0.0%)(Keybot algo this trade = +0.0%; Keybot algo for 2026 = +0.0%)(Actual results this trade = +0.0%; Actual results for 2026 = +0.0%)