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

Keybot the Quant remains short after another day of market angst. The quant is champing at the bit to go long but the bulls could not win the day yesterday. The algo number is 9 points above the signal line so Keybot wants to flip long but the internal parameters are not yet fully latched to permit the move.

The bulls have it on a silver platter if they want it so the Monday session will be interesting. The story is simple. The Sunday number will print and not change anything. The bulls need to push the SPX above 3973 to try and flip the model long so only +2 positive points are needed in the S&P futures overnight Sunday into Monday.

The bulls need a gentle steady move higher so the quant can flip long. If there is a wild gap-up move on Monday morning, it will likely trigger the gap-up timer and the algo would be prohibited from flipping long for about 1-1/2 hours. Thus, the price action in the first 10 minutes of the cash session at 9:30 AM EST on Monday morning is important.

The bears simply need to push the SPX below 3960 and all bets are off for the long side. The bears will begin growling again.

SPX 3960 and VIX 21.08 are all that matter currently. Copper remains buoyant bolstering the bull case for stocks. If the SPX remains above 3960 trending higher, especially above 3973, the bulls will rule going forward. If the VIX drops below, 21.08, there will be an upside orgy party in the stock market.

Bears need to keep the VIX elevated above 21.08 while at the same time pulling the SPX below 3960 to prove they still got game.

3/26/23; 7:00 PM EST =
3/24/23; 3:23 PM EST = -31; signal line is -40 but algorithm remains short
3/24/23; 3:08 PM EST = -45; signal line is -40
3/24/23; 2:43 PM EST = -31; signal line is -41 but algorithm remains short
3/23/23; 2:40 PM EST = -45; signal line is -42; go short 3936; (Benchmark SPX for 2023 = +2.5%)(Keybot algo this trade = -1.7%; Keybot algo for 2023 = -0.9%)(Actual results this trade = -0.7%; Actual results for 2023 = +0.0%)