STOCK MARKET BULLISH -- LONG -- CAUTION

Keybot the Quant remains long despite stock market softness to begin the new week of trading. Chips fail creating the downside in equities today. Keybot prints three numbers with the algo number only 8 points above the signal line so the caution flag is out. Chips matter. In the final minutes, SOX drops into the bear camp.

Bulls need to push SOX immediately back above 1358.90 (now at 1358.56), it is a game of pennies for Tuesday morning, to signal that the bulls continue to rule the roost. If you see SOX drop out of the gate and move lower, the bears will be growling very strongly.

Bears need either UTIL under 712.22 (now at 717) or VIX above 15.20 (now at 14.26). Either one will set up the imminent turn to the short side for Keybot.

Bulls need higher semiconductors. Bears need weaker utilities and higher volatility. These three parameters tell you the story for the Tuesday trade. Two pre-scheduled numbers print on Tuesday one mid-morning and the other in the evening to finalize the month of July (EOM). The beat goes on.

7/31/18; 7:00 PM EST EOM =

7/31/18; 10:00 AM EST =

7/30/18; 3:59 PM EST = +68; signal line is +60

7/30/18; 1:11 PM EST = +84; signal line is +59

7/30/18; 11:41 AM EST = +68; signal line is +56

7/29/18; 7:00 PM EST = +84; signal line is +55