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

Keybot the Quant is on the short side but here we go again. Keybot is champing at the bit to go long with the algo number 1 point above the signal line but the internal parameters would not yet latch to permit the move. There is some nutso sideways choppy price action going on. The bulls goosed the semi's and the banks to create the afternoon surge higher in equities.

The stock market bears must push XLF back below 30.32 and SOX below 1830.45 as soon as possible. Either one turning bearish will stop the stock market rally. Both turning bearish would create momentum selling to the downside.

The bulls simply need the SPX to move above 3286 (starting the Friday session at 3284), only 2 points, to likely flip Keybot long. Humorously, this is the mirror image of last evening when the bears only needed 1 point lower. Same dealio. Bulls will benefit from a slow move higher in the SPX not a gap-up move which may trigger a timer and delay the move to the long side.

Bulls will be golden if the RTH moves above 119.96 and/or the VIX below 13.68. Thus, the Friday battle lines are drawn. Bears need weaker chips and banks. Bulls need stronger retail stocks and lower volatility. One of them will flinch and paint the path ahead. Markets are in a sloppy chop.

Keybot prints a pre-scheduled number shortly after tomorrow's opening bell. Bulls should watch the S&P futures overnight to see if they can muster up a couple positive points, or not.

2/2/20; 7:00 PM EST EOM =

1/31/20; 10:00 AM EST =

1/30/20; 3:01 PM EST = +40; signal line is +39 but algorithm remains short
1/30/20; 2:15 PM EST = +24; signal line is +39

1/30/20; 12:34 PM EST = +8; signal line is +40

1/30/20; 11:24 AM EST = +24; signal line is +42