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

Keybot the Quant remains short as the bulls battle back yesterday afternoon. Utilities and volatility are running the show these days with UTIL 956.00 and VIX 26.78 the bull/bear lines in the sand.

UTIL is at 956.59 only 59 pennies from opening the trap-door to Hell. S&P futures are down -50 points as this is typed with the VIX above 28. The utility trap-door will likely open so watch to see if it stays open, or not. If UTIL falls below 956.00 and remains below, the stock market will be taking One Last Breath before it collapses into ugliness.

Bulls must hold the line at UTIL 956.00 with everything they got. At the same time, bulls must push the VIX below 26.78 to stage a comeback. If VIX drops under 26.78 and the SPX is above 3829, Keybot the Quant will likely flip long. There is an ugly start on tap for the open, however.

If stocks collapse as the futures indicate, but UTIL recovers or remains above 956, the bears got nothing and stocks will reverse and rally higher today. Ditto with the VIX that should launch higher to 29 and 30 when stocks drop, if not, it hints that a lot of the selling may be exhausted and ending.

UTIL 956.00 and VIX 26.78 tell you everything you need to know about the US stock market direction forward.

7/17/22; 7:00 PM EST =
7/15/22; 10:00 AM EST =
7/13/22; 3:59 PM EST = -52; signal line is -44
7/13/22; 2:34 PM EST = -38; signal line is -44 but algorithm remains short
7/13/22; 11:45 AM EST = -52; signal line is -43
7/13/22; 10:02 PM EST = -68; signal line is -42
7/12/22; 3:02 PM EST = -52; signal line is -41; go short 3831; (Benchmark SPX for 2022 = -19.6%)(Keybot algo this trade = -0.7%; Keybot algo for 2022 = +10.9%)(Actual results this trade = -1.0%; Actual results for 2022 = +8.9%)