STOCK MARKET BEARISH -- SHORT -- CAUTION -- TURN MAY BE IMMINENT

Keybot the Quant remains short. The bulls had it on a silver platter on Tuesday but instead of slowly ramping the S&P 500 higher the bulls jammed price higher at the opening bell. This action triggers a gap-up timer that prevents the algo from flipping long for 87 minutes. At the expiration of the timer, the SPX could not surpass its HOD at 2737 so the algo remains short. The algo prints one number on Tuesday and Keybot continues to want to flip to the long side once all the internal parameters latch.

For Thursday, as US stocks begin trading again after the Independence Day holiday, the bulls need to tag SPX 2737 and move higher and Keybot will likely flip long.

Bulls will receive upside fuel with lower volatility and higher chips and a higher NYA Index. Watch VIX 16.00 (now at 16.14 in the bear camp causing market negativity). If this fails and the VIX moves lower into a 15-handle and 14-handle and lower, the bulls win, the SPX 2737 will likely give way and up is the direction ahead.

Bears need lower utilities, retail stocks and commodities which will create market weakness. Keybot prints a pre-scheduled number Friday morning. The bulls have it on a silver platter again but likely need more than 23 SPX points to flip long. Watch VIX 16.00 as the rudder that steers the direction of the US stock market during the back end of the week.

7/8/18; 7:00 PM EST =

7/6/18; 9:00 AM EST =

7/3/18; 12:54 PM EST = +24; signal line is +18 but algorithm remains short

7/2/18; 3:51 PM EST = +38; signal line is +19 but algorithm remains short