STOCK MARKET BEARISH -- SHORT -- CAUTION

Keybot the Quant remains short after the bulls threatened to take control. The NYA index and utilities both fail a very big deal. The bears need weaker copper and higher volatility to send stocks lower but that is not on tap thus far today.

Thus, UTIL 975.42 and NYA 15110 are the key bull/bear lines in the sand dictating the stock market direction forward. If both remain in the bear camp, the stock market will remain soggy. If they drop sharply from here (UTIL 975.42 is the trap-door for stock), stocks are going to collapse lower.

However, if either parameter can turn bullish (price moves above the numbers shown), the bulls are going to be back in the business of creating a bottom. Keybot the Quant likely needs to see both parameters to turn bullish to signal that the imminent turn to the long side is in play and the SPX would also need to rally about 65 points today, above 3848, to flip the quant long. In these erratic markets, it would not be surprising to see it happen.

If neither UTIL or NYA can recover their key levels, it is a big negative for the US stock market. If tomorrow ends this way with both in the bear camp, a negative start to the new year is likely on tap. Conversely, if one or both parameters turn bullish, it tells you that a strong rally is likely beginning to greet the new year.

12/31/23; 7:00 PM EST EOM EOQ4 EOY 2022 =
12/28/22; 3:14 PM EST = -46; signal line is -25
12/28/22; 2:58 PM EST = -30; signal line is -23
12/28/22; 2:49 PM EST = -16; signal line is -21 but algorithm remains short
12/28/22; 2:01 PM EST = -30; signal line is -19
12/28/22; 12:56 PM EST = -16; signal line is -17 but algorithm remains short
12/28/22; 11:55 AM EST = -30; signal line is -16
12/27/22; 10:24 AM EST = -16; signal line is -14