STOCK MARKET BEARISH -- SHORT -- CAUTION

Keybot the Quant is on the short side as the chips, retail stocks and volatility give up the ghost. Chips failed at 1 PM-ish and the rout was on. The SPX tumbled over 100 points but closes down 83 points today, Thursday. The bears are in charge with the algo number 18 points below the signal line.

Bulls need VIX below 20.58 and/or SOX above 3622 and the upside in the stock market will resume and dip-buyers will be rewarded. If you are a dip-buyer with your chest puffed-out, and these 2 parameters do not turn bullish, you are about to get your head handed to you on a platter.

Bears need to keep volatility and chips in their camp while at the same time sending NYA below 16707, XLF below 39.50, UTIL below 916 and/or the SPX below 4403. The NYA and SPX levels, if they fail, signal long-term bear markets ahead (many months or a year or two, or more, of stock market misery). SPX 4403 is the cliff-edge and if it fails a major stock market crash is on the table. It is only one hundo points lower.

Utilities are key going forward and will signal a potential stock market crash. UTIL is at 924.  If UTIL 916 fails tomorrow, you will see the US stock market turn extremely ugly. If UTIL then fails at the 911 level, you will need to call 911, because the SPX will dump 30 to 50 handles in quick order. In general, if UTIL loses the 900-918 support range at anytime over the next month, a major US stock market crash is on the table. This is fun stuff. It is even more interesting since next week the 916 no longer matters but it is replaced by 919. Thus, bulls must close the week out at 4 PM EST tomorrow with UTIL above 919. If UTIL ends tomorrow below 919, it is lights out for the stock market next week. If you do not heed the warning signals, you will be wiped out. There's Winners and Losers everyday in the big city.

Bulls cheer for stronger chips and retail stocks and weaker volatility. Bears cheer for weaker banks, utilities, NYA index and SPX index which will create market carnage. The battle lines are drawn. Which side are you on? Are you a prophet or a fool?

2/13/22; 7:00 PM EST =
2/11/22; 10:00 AM EST =
2/10/22; 1:21 PM EST = +42; signal line is +60
2/10/22; 1:05 PM EST = +58; signal line is +60
2/10/22; 12:53 PM EST = +42; signal line is +59
2/10/22; 10:56 AM EST = +58; signal line is +59