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

Keybot the Quant remains short. Were you watching utilities? UTIL comes up to the critical 975; that is quite a sight. If UTIL remains above 974.95, the bulls are going to send the stock market higher. If UTIL fails at 974.95, the stock market will become negative.

There are a lot of moving parts but the stock market direction ahead likely depends on utes, the NYA index, banks and commodities. The first two parameters are sitting in the bull camp creating higher stock prices while the latter two are in the bear camp creating negativity in stocks.

Bulls need to keep UTIL above 974.95 and NYA above 15152. At the same time, bulls must push XLF above 34.09 and/or GTX above 3529. Either one will do which will likely trigger Keybot the Quant to flip long. If both flip bullish, a big stock market rally will be underway.

Bears need to keep XLF below 34.09 and GTX below 3529 and at the same time, pull UTIL below 974.95 and/or NYA below 15152. One of the parameters turning bearish will send the stock market lower and if both turn bearish, stocks will be falling apart.

An interesting couple-three weeks are ahead for utilities. UTIL 974.95 is the bull/bear line in the sand that has big ramifications for the path forward. If UTIL remains above moving higher, there will likely NOT be a major selloff or crash to begin 2023. Instead, the stock market will rally or remain buoyant and the next significant drop lower for the US stock market will occur further into 2023. So there is a lot riding on utes.

In addition, UTIL 1012 is a key bull/bear line in the sand for this week if price moves higher. If UTIL hits 1012, the US stock market will be screaming higher. For the first trading week of the year, 1/2/23, UTIL 979 is a bull/bear line in the sand, and for the week of 1/9/23, UTIL 888 is a bull/bear line in the sand. You can see the look-back comparisons become easier which favors bulls. If UTIL is above 979 next Monday, 1/2/23, stocks will be rallying higher.

If the bears want to sustain negativity in the stock market, they need to send UTIL below 974.95 pronto and then send utes far lower.

US stocks are not trading due to the Christmas holiday but will begin trading again tomorrow morning.

Keybot the Quant logs another great year and the algorithm program will be rezeroed next weekend to assess 2022 and begin 2023.

12/31/22; 7:00 PM EST EOM EOQ4 EOY 2022 =
12/25/22; 7:00 PM EST = -16; signal line is -11
12/23/22; 3:59 PM EST = -16; signal line is -10
12/23/22; 10:00 AM EST = -32; signal line is -9
12/23/22; 9:36 AM EST = -32; signal line is -7
12/21/22; 3:37 PM EST = -16; signal line is -4
12/21/22; 3:12 PM EST = -32; signal line is -3
12/21/22; 12:53 PM EST = -16; signal line is +0
12/21/22; 12:18 PM EST = -32; signal line is +2
12/21/22; 10:38 AM EST = -16; signal line is +4
12/21/22; 10:27 AM EST = -32; signal line is +6
12/21/22; 10:00 AM EST = -46; signal line is +8
12/20/22; 9:00 AM EST = -49; signal line is +11