STOCK MARKET BULLISH -- LONG -- CAUTION -- TURN MAY BE IMMINENT

Keybot the Quant remains long after another day of choppy drama with the US Monthly Jobs Report on tap at 8:30 AM EST about 15 hours away. Utilities took the pipe out of the gate this morning. The algo number drops 32 points from a positive 16 to a negative 16 in 6 minutes but it remains above the signal line albeit by only 3 measly points. Things change quickly in these fast-moving chop-suey markets.

Copper is strong ditto the NYA index so today may have been a bear trap. The jobs report may send stocks crazy in one direction or another tomorrow morning. The quant is now tracking banks with interest.

Bears need weaker banks and a lower NYA index to flip the model short. Bulls need to pump utes and chips higher to signal the all-clear for stock market upside.

The bulls have a wild card ace up their sleeve. The UTIL 978.52 parameter disappears and is replaced with 888 for all of next week so the bulls will easily receive juice next week with UTIL above 888. At the same time, UTIL 975.90 remains as another important bull/bear line in the sand. If UTIL finishes tomorrow above 975.90, the stock market is going to rally big into next week.

Bulls need UTIL above 975.90 which will immediately stop the broad market selling and 978.52 would unleash a strong upside rally. Bulls also need SOX above 2595 which will create a big up-leg in the stock market.

Bears need XLF below 34.15 (now at 34.61) which will unleash downside action in the US stock market. Watch this one in the pre-market. Of course, if banks are positive after the jobs report, it likely means party time for bulls on Friday and a big upside rally in stocks.

If XLF loses 34.15, or if NYA loses 15073, either one would do, and the SPX drops below 3802 trending lower, Keybot the Quant will likely flip short hence the imminent turn notation in the title line.

Watch UTIL 975.90 and XLF 34.15 and you will know what direction the stock market is headed. 

1/8/23; 7:00 PM EST =
1/6/23; 9:00 AM EST =
1/5/23; 9:36 AM EST = -16; signal line is -19
1/4/23; 10:49 AM EST = +16; signal line is -19