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

Keybot the Quant remains short as more drama occurs in the shortened session. The algo prints 7 numbers in the short session with the bulls and bears duking it out back and forth. The quant is champing at the bit to go long with the algo number 10 points above the signal line but the internal parameters will not fully latch yet to permit the move.

Utilities ran the show on Monday and that will continue on Wednesday after the July 4th holiday and party time in Party Town. UTIL 910.67 is the bull/bear line in the sand this week and will send the overall stock market in the same direction. UTIL is at 912.39 creating lift in stocks. If bearish, you must see UTIL below 910.67 as soon as possible or you will be hosed.

Bears must push UTIL below 911 or they are in trouble. Bears need weaker banks and XLF below 33.02 but the financials continue higher each day.

If UTIL remains above 911, and the SPX moves above 4456, Keybot the Quant will likely flip long, hence the imminent turn notation in the title line.

This is only 1 point higher in the S&P futures overnight so that will give you a heads-up on what is in store for Wednesday. The bulls have it if they want it but a gap-up move at the opening bell is not desired. If the SPX gaps higher at the opening bell tomorrow morning on hump day, the algo will likely bulk at going long and instead wait approximately 90 minutes before committing.

Bulls need stronger copper and CPER above 23.50 which represents a +0.7% pop in copper futures so watch that closely. Bulls will also benefit from stronger commodities and GTX above 3270. Either one of these parameters jumping into the bull camp will guarantee higher stocks going forward.

Boiling it down to make things simple, if S&P futures are up from +1 to about +12 at the opening bell, Keybot the Quant will likely flip long. If copper futures are up over +0.7%, that will tell you the bulls rule and stocks are going to melt-up higher.

If S&P futures are up over +13, the algo will likely wait for about 90 minutes before committing to the long side, if it does.

If S&P futures are negative, the bears may still have some fight in them. This negativity will be bolstered if UTIL can fall back below 910.67 and trail lower. Weak copper and commodities will also give a nod to the bears. 

Wednesday will be an interesting day in the stock market where the bulls puff their chests out proving how strong they are, or, they fold like a cheap suit. Happy Independence Day.

7/9/23; 7:00 PM EST =
7/7/23; 9:00 AM EST =
7/3/23; 12:56 PM EST = +18; signal line is +8 but algorithm remains short
7/3/23; 12:44 PM EST = +2; signal line is +9
7/3/23; 12:13 PM EST = +18; signal line is +11 but algorithm remains short
7/3/23; 11:52 AM EST = +2; signal line is +11
7/3/23; 11:41 AM EST = +18; signal line is +12 but algorithm remains short
7/3/23; 11:23 AM EST = +2; signal line is +12
7/3/23; 10:38 AM EST = +18; signal line is +13 but algorithm remains short
7/2/23; 7:00 PM EST EOM EOQ2 EOH1 = +2; signal line is +13