STOCK MARKET BULLISH -- LONG -- CAUTION

Keybot the Quant remains long through the carnival drama this week with the algo number 11 points above the signal line. The choppy slop continues. The bulls recover today pulling the banksters and volatility back into their camp.

The gap down move Wednesday morning was not in the bears favor. It would have been better to slowly drift lower and then fail. Most of the time, when a gap-up, or gap-down, move occurs at the opening bell, price will typically retrace back to where the gap started and this time was no different. The quant triggers a gap-down timer and when this expired, the robot was in no mood to flip short. It is far better for the gap moves to occur during the session (rather than exactly at the opening bell) when they will carry more clout. Wednesday was a bear trap.

Bulls push utilities higher a positive indication for stocks with UTIL at 1103. Bulls must push UTIL above 1124 tomorrow and then above 1140 for all of next week a tall order but they are doing a good job of driving utes higher. The bigtime Wal Street SPX targets way above 7K will not occur unless UTIL takes out the utility numbers above.

The bears have to pull the banks and vol back into their camp or they got nothing. Bears need XLF below 54.30 and/or VIX above 16.88. Either one will do to create negativity. If 1 of the 2 turn bearish, consider the imminent turn to the downside to be in play and if the SPX falls below 6938 trending lower, Keybot the Quant will likely flip short.

XLF begins at 54.37 on 7 pennies in the bull camp so watch it like a hawk. Check it in the pre-market since it tells you which way stocks are headed. Bears have it on a silver platter if they want it. Bears need to create soggy banksters and a drop of only about 7 points in the SPX and that would be enough to flip short. Friday will be an interesting day to end the week.

Watch XLF 54.30, VIX 16.88 and SPX 6938. JJ Cale croaked about a year or more ago, here he is playing with Clapton at the Crossroads, Clapton's party each year. Some called JJ's unique playing style chicken scratching. Clapton is considered one of the best guitarists in history and he was asked who was his mentor. Eric said there is only one man that was my mentor and confidant in music and guitar; JJ Cale. You can tell those guys enjoy playing together. JJ's wife is playing rhythm guitar off to the side; she's a sweetheart. JJ's legs were not as strong since he was getting old, so he used the stool to lean on, but then he was having fun and standing, but he had to stoop over to sing into the mic that was not set up for that, he is laughing his *ss off about it, these guys are the best in the world, they are just jammin' and havin' fun all day long. Call Me the Breeze.

1/18/26; 7:00 PM EST =
1/15/26; 9:39 AM EST = +40; signal line is +29
1/14/26; 3:35 PM EST = +24; signal line is +28 but algorithm remains long
1/14/26; 3:21 PM EST = +10; signal line is +28 but algorithm remains long
1/14/26; 3:11 PM EST = +24; signal line is +29 but algorithm remains long
1/14/26; 6:45 AM EST = +10; signal line is +29 but algorithm remains long
1/14/26; 6:31 AM EST = +24; signal line is +29 but algorithm remains long
1/14/26; 5:41 AM EST = +10; signal line is +28 but algorithm remains long
1/13/26; 3:11 PM EST = +24; signal line is +28 but algorithm remains long