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

Keybot the Quant remains short but the bulls are flexing their muscles. UTIL tags 982 above the 975 bull/bear line in the sand so the bulls are puffing their chests out even though the bears are still holding the stock market ball. UTIL above 975 is a huge deal as previously explained.

The algo number is only 2 points below the signal line, thus, a couple scenarios may play out. First, the utilities may start to oscillate above and below 975. Under for a few minutes or half-hour, then back above for a while, you get the idea, jogging, this tells you that the quant is likely getting ready to flip long.

The second scenario would be the banks or commodities joining the bull camp which will likely cause Keybot to go long. If XLF moves above 34.08 and/or GTX above 3528, either one will do, and if the SPX is above 3846 trending higher, Keybot the Quant will likely flip long. If both turn bullish, stocks will be rallying strongly higher. (GTX is shown on stockcharts.com as $GTX)

The bears need to drag UTIL back below 975 and keep it trending lower to signal that stock market pain and misery is the path ahead. Same-o with the NYA 15112 bull/bear line in the sand. Bears need NYA back below 15112 pronto or the bulls are going to start pushing stocks higher.

Thus, bears must keep banks and commodities negative while pulling UTIL under 975 and NYA below 15112. If this occurs, there will be Hell to pay and the quant will remain short.

Bulls win big if XLF moves above 34.08 and if GTX moves above 3528. Any 1 of the 2 turning bullish, with the SPX above 3846 trending higher, will probably flip the quant long. 

There may be excitement on tap as the year end. A few years back, the quant flipped sides in the last minute of the last trading day of the year so you never know what will happen. The robot will be rezeroed for 2023 on the weekend.

Looking at the pre-market, with the opening bell for the regular US session about 1 hour away, XLF pops to 34.06. Utilities are also trading higher. The bulls are puffing their chests out.

12/31/22; 7:00 PM EST EOM EOQ4 EOY 2022 =
12/27/22; 10:24 AM EST = -16; signal line is -14
12/27/22; 10:05 AM EST = -32; signal line is -13
12/25/22; 7:00 PM EST = -16; signal line is -11