STOCK MARKET BULLISH -- LONG -- CAUTION

Keybot the Quant remains long through a choppy session. Volatility failed in the early morning then the chips were down, so all looked bleak, but they reversed and then banks rallied so it was all blue skies and rainbows, but then financials are punched in the face into the closing bell sending stocks lower. The bulls remain in control of the stock market waving the volatility and semiconductor banners. VIX is below 26.79 and SOX is above 3084 so the bulls are buying stocks.

The quant may go into a lull period sometimes, like the last couple weeks, but then on any given day the robot can go nutso spitting out numbers faster than Timmy the neighbor kid spitting watermelon seeds. The algo prints 10 numbers today although 2 are pre-scheduled numbers.

The battleground today was the banks as forecasted ahead of time. XLF danced on each side of the bull/bear line in the sand at 35.58, and in the final minutes the bears win sending XLF down to 35.47. If XLF remains below 35.58, the stock market will weaken and the downside selling can be gauged by VIX 26.79 and SOX 3084. If XLF rallies above 35.58 and higher, traders will be buying stocks with both fists.

Higher copper will also help the bulls that need to push CPER above 26.65 (now at 25.97). This equates to a +2.6% rise in copper futures. This is a big ask but watch to see if the bulls can bite off a few smaller copper chunks and eat the +2.6% over a 2 or 3-day period which would add more upside for the stock market.

Thus, bulls need the stronger banks to signal the all-clear for upside orgy time in the stock market. Higher copper will create even more upside. Bears need to send banks and chips lower and volatility higher to create market mayhem.

The bulls are in control of the stock market with the algo number 17 points above the signal line. Today was the last day of May and June trading begins in the morning.

6/5/22; 7:00 PM EST =
6/3/22; 9:00 AM EST =
5/31/22; 7:00 PM EST EOM = +11; signal line is -6
5/31/22; 3:59 PM EST = +11; signal line is -7
5/31/22; 3:28 PM EST = +27; signal line is -8
5/31/22; 2:48 PM EST = +11; signal line is -8
5/31/22; 1:45 PM EST = +27; signal line is -8
5/31/22; 11:40 AM EST = +11; signal line is -7
5/31/22; 10:25 AM EST = -3; signal line is -6
5/31/22; 10:00 AM EST = -19; signal line is -3 but algorithm remains long
5/31/22; 9:39 AM EST = -19; signal line is +0 but algorithm remains long
5/31/22; 3:06 AM EST = -3; signal line is +3 but algorithm remains long
5/29/22; 7:00 PM EST = +11; signal line is +5