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

Keybot the Quant remains long as the market battle continues. Utilities and copper continue controlling stock market direction. The bulls are in charge but the algo number is only 5 measly points above the signal line.

UTIL (DJU) 945.03 and 969.34 are the two key bull/bear lines in the sand for the week ahead. UTIL begins the week at 934 below both the 945 and 969 palindrome, in the bear camp, creating market negativity. Not only that, but if this activity remains, it warns of a serious and epic drop in the stock market set to begin anytime that will do extensive damage in the weeks ahead. Bulls must push UTIL at least above 945 or they are in big trouble.

CPER 23.60 is another bull/bear line in the sand. CPER begins the new week at 24.32 a big 72 cents, or 3%, above the key 23.60. Watch copper futures overnight to see if the red metal drops -3%.

Bulls need UTIL above 945 to breathe easier about the path forward. If UTIL then moves above 969, the bulls will be partying sending stocks higher in the week ahead.

Bears need CPER below 23.60 and if this occurs, and the SPX drops below 4564 trending lower, Keybot the Quant will likely flip short. The -3% drop in copper is a lot to ask for if you are bearish.

Watch UTIL 945. If price comes up and pokes above and below 945 a couple times or so during Monday, that signals a stock market that is about to turn negative. Since the requirement for copper is substantive (-3%), the bears may instead jog UTIL above and below 945 a few times which would then create the potential for the model to flip short regardless of the status in copper.

The week ahead will be interesting. Keybot prints a pre-scheduled number tomorrow evening for month end and then also on Friday morning before the opening bell.

8/6/23; 7:00 PM EST =
8/4/23; 9:00 AM EST =
7/31/23; 7:00 PM EST EOM =
7/30/23; 7:00 PM EST = +44; signal line is +39         
7/28/23; 10:00 AM EST = +44; signal line is +39
7/27/23; 10:41 AM EST = +44; signal line is +39