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

Keybot the Quant flips back to the short side yesterday at SPX 4660 as the choppy whipsaw slop continues. Chop suey. Retail stocks failed yesterday stopping the stock market rally and then volatility spiked late day triggering the turn to the short side.

Bears need weaker chips to prove they got game. Bears need SOX below 3788 which will kick in serious stock market selling action.

Bulls need to retrace yesterday's retail stocks and volatility failures to regain control. Bulls need VIX below 19.39 and RTH above 190.00. VIX is trading right now in the early morning hours East Coast time at 20.24 so the bears are smiling. VIX 19.39 is the tell.

If volatility weakens and VIX loses 19.39 anytime this morning, the bulls will be staging a comeback. If stocks rally, but the VIX does not drop below 19.39, the bulls got nothing and stocks will reverse and fall apart. If there is bad news in semiconductor land and chip stocks are soggy, that hints that the stock market will fall apart.

On the last trade, another whipsaw that only lasted a couple days (but not quantified as a whipsaw as per the quant), the Keybot the Quant computer program and the actual trading are flat. The benchmark S&P 500 is down -2.2% on the year thus far. The quant program is down -4.4% and the actual trading is down -2.5% in 2022. The year begins on the soggy-side. Keybot exits DIA and enters DOG.

The stock market remains erratic, choppy and unstable. Volatility, retail stocks and chips tell you everything you need to know for today. S&P futures are up +4 with VIX at 20.10. Futures were up over +10 a few minutes ago.

As a side note, the VIX failed yesterday at about SPX 4673-ish so bears may be okay up to the 4672-4674 range but above there the bulls would likely take over. Watch VIX 19.39.

1/16/22; 7:00 PM EST =
1/14/22; 10:00 AM EST =
1/13/22; 3:50 PM EST = +58; signal line is +66; go short 4660; (Benchmark SPX for 2022 = -2.2%)(Keybot algo this trade = -0.4%; Keybot algo for 2022 = -4.4%)(Actual results this trade = +0.2%; Actual results for 2022 = -2.5%)
1/13/22; 3:16 PM EST = +58; signal line is +67 but algorithm remains long
1/13/22; 12:21 PM EST = +72; signal line is +67
1/12/22; 3:41 PM EST = +88; signal line is +67
1/12/22; 3:11 PM EST = +72; signal line is +66
1/12/22; 2:21 PM EST = +88; signal line is +66
1/12/22; 1:56 PM EST = +72; signal line is +66
1/11/22; 11:33 AM EST = +88; signal line is +66
1/11/22; 11:28 AM EST = +72; signal line is +66; go long 4679; (Benchmark SPX for 2022 = -1.8%)(Keybot algo this trade = -1.1%; Keybot algo for 2022 = -4.0%)(Actual results this trade = -1.1%; Actual results for 2022 = -2.7%)