STOCK MARKET BEARISH -- SHORT -- CAUTION

Keybot the Quant remains short with the algo number 25 points below the signal line. Utilities remain an important influencer on stock market direction. UTIL 980.42 is the key bull/bear line in the sand for this week. UTIL begins at 1012 so this creates a bullish lift to stocks. Tell that to the S&P futures tanking -40 points after President Biden says the US will join the fight supporting Taiwan if China invades. 

Thus, that 25 point difference and favorability for bears will likely be decreased substantively since UTIL should remain above 980. If UTIL deteriorates and loses the 974-980 level, it is likely that the US stock market will crash. Bulls must keep UTIL above 980 all this week.

The other 3 parameters the quant is tracking right now are banks, volatility and copper. All 3 are in the bear camp creating  market negativity. If utes turn bullish at the opening bell, which is likely, and any one of these 3 parameters turn bullish, Keybot the Quant will champing at the bit to flip long. Bulls need XLF above 33.70, VIX below 25.29 and/or CPER above 21.78.

Copper futures need to rally about +2.2% to create stock market positivity and futures are trading down -1% currently so now the red metal needs +3.2% to help the bulls. VIX is trading at 27.79 right now popping this morning after the Biden comments 2-1/2 sticks from the bull/bear line in the sand. GS, BAC and XLF are all trading down in the pre-market so the bulls are not going to get help from the banks either, at least at the open. The Whitehouse will likely provide clarity on the Taiwan comments today further impacting stocks.

Keybot prints a pre-scheduled number on Tuesday morning. The Federal Reserve rate decision is Wednesday afternoon. The beat goes on.

9/25/22; 7:00 PM EST =
9/20/22; 9:00 AM EST =
9/18/22; 7:00 PM EST = -50; signal line is -25
9/16/22; 10:00 AM EST = -50; signal line is -25
9/15/22; 2:54 PM EST = -50; signal line is -24