STOCK MARKET BEARISH -- SHORT

Keybot the Quant remains short with the algo number 28 points below the signal line. The bears are cruising but in these markets things can change on a dime. The algo is busy printing 14 numbers Wednesday through Friday.

The failure in the chips ushered in the stock market weakness last week. Banks and retail stocks followed the semi's down the rabbit hole of doom.

Bulls need stronger retail stocks, banks, chips and lower volatility. Bears need a weaker NYA index and weaker commodities.

Bulls need RTH above 175.38, XLF above 34.25, SOX above 3580 and VIX below 15.50. If any one of the four turn bullish, the caution flag will be out. If 2 of the 4 turn bullish, the imminent turn to the long side will be in play, and if the SPX then rallies above 4382 trending higher, Keybot the Quant will likely flip long. If 3 flip bullish, the algo will likely immediately flip long.

Bears need NYA below 15563 which will usher-in dramatic downside for US stocks. Bears also need GTX below 3400 which will create further stock market negativity.

Utilities were an early warning side of the stock market trouble as previously forecasted by the Keybot the Quant and The Keystone Speculator web sites. The 2 bull/bear lines in the sand for utes this week are UTIL 959.19 and UTIL 936.00. UTIL price begins the week at the 878 palindrome so it is a tall ask for price to rally 58 points and more but you never know.

Of greater interest, and the reason the utes are discussed, is next week. For the week of 8/28/23, The UTIL 959.19 becomes a worthless number replaced with 914.83 a much easier goal for the bulls to achieve. Thus, if UTIL rallies this week and price is near or above 915 when markets close on Friday, that tells you that a relief rally is likely in progress for US stocks or about to begin.

If UTIL remains sub 9 hundo and lower, especially lower than 878, come Friday, that tells you that the US stock market is in Dire Straits and will perform the Walk of Life to Hades. If UTIL price languishes lower this week, the US stock market is in a crash profile where serious downside and collapse in stocks can occur. Watch the UTIL 915 line in the sand for next week, this week.

The table is set. Will market participants eat happy pasta or sh*t stew? Simply watch RTH 175.17, XLF 34.25 and NYA 15563 to know the direction ahead for stocks.

8/27/23; 7:00 PM EST =
8/25/23; 10:00 AM EST =
8/20/23; 7:00 PM EST = -34; signal line is -6
8/18/23; 3:59 PM EST = -34; signal line is -4
8/18/23; 1:23 PM EST = -18; signal line is -3
8/18/23; 1:03 PM EST = -34; signal line is -2
8/18/23; 11:27 AM EST = -18; signal line is -1
8/17/23; 1:31 PM EST = -34; signal line is +0
8/17/23; 11:05 AM EST = -18; signal line is +1
8/17/23; 10:21 AM EST = -2; signal line is +1
8/16/23; 3:13 PM EST = -18; signal line is +2
8/16/23; 2:23 PM EST = -2; signal line is +3
8/16/23; 2:16 PM EST = -18; signal line is +4
8/16/23; 2:00 PM EST = -2; signal line is +5
8/16/23; 1:14 PM EST = -18; signal line is +5
8/16/23; 9:41 AM EST = -2; signal line is +6
8/16/23; 9:00 AM EST = -18; signal line is +6
8/15/23; 3:32 PM EST = -18; signal line is +7