Keybot the Quant remains short as the stock market endures more punishment. The beatings will continue until moral improves. UTIL lost the 976 bull/bear line in the sand so stocks remain soggy in the Monday session. S&P futures are up about +50 points as this is typed 1 hour before the US open.
Bulls need either UTIL above 976 and/or VIX below 25.45. Either one will immediately confirm that a bottom is in for stocks and a rally should begin. Both turning bullish would represent a strong recovery rally underway. If stocks rally but the 2 parameters remain bearish, the bulls got nothing and stocks will likely roll over lower again.
On utes, UTIL 888 is another important number for this week but UTIL is at 953 comfortably above the 888 which is a bullish signal. Here is what's interesting. Next week, Keybot the Quant already identifies UTIL 954 as a key bull/bear line in the sand for all of next week (the 888 becomes meaningless). Look how that puppy came straight down to sit at 953-954. It tells you what is occurring. Stocks are likely bottoming this week but the major tell and greenlight for a rally will be if UTIL ends the week above or below 954.
Watch UTIL like a hawk since it will tell you the direction of stocks ahead. A drop in utes below 953 today and deteriorating lower is extremely bad news for the US stock market and indicates that a major crash is likely going to happen at any time forward.
If utes rally today, that is a hopeful sign for bulls that the relief rally is beginning. UTIL above 976 will signal that a bull rally is underway and strengthening.
The bears are in charge but the algo number is only 17 points below the signal line and came within 1 point out of the gate yesterday. This hints that the quant is sniffing out a potential bottom but time will tell since Keybot the Quant only sees 1's and 0's.
Keybot prints a pre-scheduled number this morning and another on Friday morning. EOQ3 is at hand (end of third quarter; July, August, September) and Q4 begins on Saturday.
10/2/22;
7:00 PM EST EOM EOQ3 =
9/30/22;
10:00 AM EST =
9/27/22;
10:00 AM EST =
9/26/22;
9:38 AM EST = -50; signal line is -33
9/26/22;
9:36 AM EST = -34; signal line is -33
9/25/22;
7:00 PM EST = -50; signal line is -32
9/23/22;
3:49 PM EST = -50; signal line is -32
9/23/22;
11:37 AM EST = -66; signal line is -31
9/23/22;
11:22 AM EST = -50; signal line is -30
9/23/22;
10:47 AM EST = -66; signal line is -29
9/23/22; 9:37 AM EST = -50; signal line is -27
9/20/22;
9:00 AM EST = -34; signal line is -26
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