STOCK MARKET BULLISH -- LONG

Keybot the Quant remains long with the robot spitting out 7 numbers to begin the holiday-shortened week of trading. The bulls are in charge with the algo number 30 points above the signal line. Another King Donnie stock market rally occurs like early November when he won the election. The orange head is not imposing heavy tariffs as yet so the stock market is happy. Traders are tripping over each other to buy equities for fear of missing out on the fun.

Further upside in the stock market occurs due to utes and retail stocks. The bulls pump XRT above 79.57 creating another leg higher for equities. The bulls also pumped UTIL above 1031.49 creating more bullish joy. Alas, UTIL falls back below the 1031.49 line in the sand by a hair no longer creating bullishness. XRT remains above the 79.57 line in the sand by a hair creating lift in the stock market.

Thus, bulls need UTIL above 1031.49 to prove that nothing is going to stop them from sending the stock market to the moon. Stocks will stall if UTIL 1031.49 cannot be achieved. It gets interesting because the quant needs to see UTIL above 1067 for all of next week (the 1031 becomes meaningless). That means that UTIL must rally another 37 points by Friday at 4 PM EST. In other words, if the bulls pump the stock market higher using 1031+, that is fine and dandy for this week and it will create buoyancy int he stock market, but for next week that bar is raised to 1067 and if UTIL is not there, any gains will be given back.

Bears need weaker retail stocks and to send XRT back below 79.57 as the top priority. Even with XRT turning bearish it would not be enough for the quant to be looking to go short. The robot likely needs higher volatility and weakness in other sectors, perhaps copper, to be in position to flip short. For now, the bulls have their feet up on the desk and are cruising along worry-free to the Love Shack for more fun and frolic. Tin roof..... rusted. Watch utilities and retail stocks.

1/26/25; 7:00 PM EST =
1/24/25; 10:00 AM EST =
1/21/25; 3:54 PM EST = +46; signal line is +16
1/21/25; 3:31 PM EST = +62; signal line is +15
1/21/25; 2:12 PM EST = +46; signal line is +15
1/21/25; 1:50 PM EST = +30; signal line is +14
1/21/25; 1:25 PM EST = +46; signal line is +14
1/21/25; 1:09 PM EST = +62; signal line is +12
1/21/25; 12:30 PM EST = +46; signal line is +10
1/19/25; 7:00 PM EST = +30; signal line is +7