STOCK MARKET BULLISH -- LONG -- CAUTION

Keybot the Quant remains long after the jobs circus Friday. Every day is a different sideshow. Despite the drop in stocks, volatility did not budge. VIX remains low in the bull camp. Ditto copper that remains elevated and bullish.

The bears grab the chips low-hanging fruit smacking the SOX around with a baseball bat creating the stock market negativity.

The algo number is only 6 points above the signal line so the stock market is a coin-flip. Chips, volatility and copper dictate stock market direction currently. Everything else is noise. Banks remain important as well.

Bears need CPER below 26.78 and/or VIX above 26.73. Either parameter will do. Both will create a serious drop in stock prices. Copper futures trade overnight into Monday morning and the VIX will be online at 3 AM EST Monday. Copper futures need to drop about -1% to create market mayhem so watch that overnight Sunday. If copper is down more than -1%, the stock market is in trouble. If copper is weak but not down -1%, that is not a big deal. If copper is positive, that tells you the US stock market is likely going to rally on Monday.

Bears also need higher volatility to prove that they have downside gusto. The VIX has to move 2 big handles to 26.73 to prove that the wheels are falling off the stock market (typically no biggie for volatility that can print crazy big point moves).

If either CPER or VIX turn bearish, consider the imminent turn to the downside in play, and if the SPX is down 10 or more points and trending lower, Keybot the Quant will likely flip short.

Bulls need to keep copper and volatility in the bull camp while pulling the semiconductors higher. Bulls need SOX above 3082 to start a strong upside rally in the stock market.

Bulls need SOX 3082 while bears need either CPER 26.78 or VIX 26.73. One of these 3 will flinch and tell you where the stock market is going. If status quo remains, stocks will bump along sideways until one of them steps up to the plate to reveal their intentions. Keybot prints one prescheduled number next week on Friday.

6/12/22; 7:00 PM EST =
6/10/22; 10:00 AM EST =
6/5/22; 7:00 PM EST =
6/3/22; 1:23 PM EST = +11; signal line is +5
6/3/22; 1:07 PM EST = +27; signal line is +4
6/3/22; 10:34 AM EST = +11; signal line is +3
6/3/22; 9:00 AM EST = +27; signal line is +2
6/2/22; 10:53 AM EST = +27; signal line is +0