STOCK MARKET BEARISH -- SHORT

Keybot the Quant remains bearish. The algorithm prints 8 numbers in the Tuesday session as the stock market deteriorated. This week, the banks, retail stocks, semiconductors and the NYA index all fail into the bear camp creating the stock market angst. The algo number is 31 points below the signal line.

Bulls need SOX above 1532, RTH above 112.80 and/or NYA above 12742. Any one of these three will immediately stop the market selling. If the 3 remain in the bear camp, stocks will continue selling off. If 2 of the 3 turn bullish, consider the imminent turn to the long side in play. If all 3 flip bullish, the stock market is likely back in rally mode and heading higher and Keybot would likely flip to the long side.

Bears need weaker utilities to continue the downside fun. If utes remain buoyant, the stock market will likely recover over time. Bears need the utilities to start showing a weekly trend lower if they want to create carnage into the end of the year.

Bears need the SPX below 2833, now at 2893, to set up a potential stock market crash scenario. If the SPX drops below 2833, the stock market is toast; equities will be collapsing in earnest.

Bulls need stronger chips, retail stocks and NYA index while bears need weaker utilities.

10/13/19; 7:00 PM EST =

10/11/19; 10:00 AM EST =

10/8/19; 3:03 PM EST = -20; signal line is +11

10/8/19; 2:36 PM EST = -4; signal line is +14

10/8/19; 2:07 PM EST = -20; signal line is +16

10/8/19; 1:31 PM EST = -4; signal line is +19

10/8/19; 1:03 PM EST = -20; signal line is +21

10/8/19; 12:51 PM EST = -4; signal line is +23

10/8/19; 9:49 AM EST = -20; signal line is +25

10/8/19; 9:36 AM EST = -4; signal line is +28

10/7/19; 2:10 PM EST = +26; signal line is +30