STOCK MARKET BULLISH -- LONG -- CAUTION -- TURN MAY BE IMMINENT

Keybot the Quant remains long as the new week of trading is set to begin. Last week and right now is odd in that the model has wanted to go short for five days but the internal parameters will not yet latch to permit the move. The quant has never exhibited this behavior before which makes it fascinating to watch. If the SPX slips below 3261 and trends lower, beginning the week at 3265, only 4 points lower, Keybot will likely flip short, hence the imminent turn notation in the title line. The bears have it on a silver platter if they want it. At 6 PM EST, watch to see if the S&P futures are down -4 or more overnight, or not.

The bulls must push utilities higher to keep printing record stock market highs. Bulls need UTIL above 880.50, now at 874, to guarantee continued stock market joy. Bears need UTIL to remain below 880.50 and trend lower which would signal doom and gloom not only in the shorter-term (days and a few weeks) but stretching out through the medium term (months) and perhaps longer (years). If UTIL pops above 880.50 this week, the stock market will likely remain happy in Q1. If UTIL fails at attaining 880.50 this week, it likely kicks off the start of long term stock market misery. Watch it closely especially Monday morning.

Bears will benefit from higher volatility and/or weaker retail stocks, copper and commodities. Bears need VIX above 14.04, RTH below 119.42, CPER below 17.20 and/or GTX below 2511, respectively. If any of these four parameters turn bearish, the path ahead is selling in the stock market. If the four remain in the bull camp, the stock market will chop sideways and then will only go up if the bulls can push the utes higher.

The stage is set. Something will probably hit the fan this week but you never know. Keybot only sees 1's and 0's. The quant prints two pre-scheduled numbers this week both on Friday morning; one before the opening bell and one after. The beat goes on.

1/19/20; 7:00 PM EST =
1/17/20; 10:00 AM EST =

1/17/20; 9:00 AM EST =

1/12/20; 7:00 PM EST = +72; signal line is +76 but algorithm remains long

1/10/20; 12:00 PM EST = +72; signal line is +76 but algorithm remains long