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

Keybot the Quant whipsaws back to the short side at SPX 5254 this Manic Monday morning. As previously mentioned, utes and vol are all that matter. Pope Powell's jackboot slipped off Uncle Vix's neck so volatility jumps higher sinking stocks.

At the same time, utilities collapse shortly after trading begins. Utes make a comeback and regain one leg so they are trying to limp the bulls back into the lead. The algo number is 4 points above the signal line so Keybot the Quant is champing at the bit to whipsaw back to the long side. This year's chop suey is a lot like last year's.

VIX 13.21, UTIL 873.15 and UTIL 878.50 are controlling stock market direction currently. VIX is at 13.65 creating selling pressure. UTIL is at 875 creating negativity (below 878.50) but also creating positivity for stocks (above 873.15).

Thus, bulls win and the quant will likely whipsaw back to the long side if the SPX runs above 5264 trending higher. This is about 20 points above today's closing price at 5244 so watch tomorrow morning to see if the S&P futures are up +20 to signal bullish fun ahead, or not. Bulls will gather big strength if VIX drops below 13.21 and/or if UTIL moves above 879 heading higher.

The quant remains in the bear camp waiting to see what the bulls got in the morning or maybe during Tuesday Afternoon. Bears simply need UTIL back below 873 to usher in negativity and confirm that down is the path ahead for US stocks. If so, watch chips, copper and commodities which would create further negativity and deterioration in the stock market.

On the last trade that ran for only about 7-1/2 hours, the quant program and actual trading are flat. For the year thus far, the benchmark S&P 500 is up an euphoric +10% with the quant program and actual trading each down a couple percent. Keybot exited SSO and entered SH dropping down into the 1x ETF's due to the triggering of the whipsaw timer. The robot will remain in the 1x ETF's for 30 days to reduce risk due to the choppy whipsaw slop.

Easy-peasy. Bulls need SPX 5264 and UTIL 879 trending higher and VIX below 13.21 and dropping. Bears need UTIL 873 and trending lower. You never thought utilities could be so interesting, did you? Utes typically move lower on higher yields and visa versa.

4/7/24; 7:00 PM EST =
4/5/24; 9:00 AM EST =
4/1/24; 2:22 PM EST = +32; signal line is +28 but algorithm remains short
4/1/24; 2:12 PM EST = +16; signal line is +28
4/1/24; 1:16 PM EST = +32; signal line is +28 but algorithm remains short
4/1/24; 10:18 AM EST = +16; signal line is +28; go short 5254; (Benchmark SPX for 2024 = +10.2%)(Keybot algo this trade = +0.1%; Keybot algo for 2024 = -1.5%)(Actual results this trade = +0.2%; Actual results for 2024 = -1.9%)
4/1/24; 10:06 AM EST = +16; signal line is +28 but algorithm remains long
4/1/24; 9:39 AM EST = +32; signal line is +29
4/1/24; 3:06 AM EST = +48; signal line is +29
3/31/24; 7:00 PM EST EOM EOQ1 = +62; signal line is +28
3/28/24; 3:31 PM EST = +62; signal line is +28
3/28/24; 3:01 PM EST = +46; signal line is +27
3/28/24; 10:00 AM EST = +30; signal line is +27
3/28/24; 9:30 AM EST = +30; signal line is +27; go long 5249; (Benchmark SPX for 2024 = +10.0%)(Keybot algo this trade = -0.6%; Keybot algo for 2024 = -1.6%)(Actual results this trade = -0.9%; Actual results for 2024 = -2.1%)