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

Keybot the Quant remains long as the bears flex their muscles. The bears came to play today but they did not eat their Wheaties and lost their punch as the day played out. The VIX spiked overnight with S&P futures collapsing and then at the opening bell, semiconductors committed hari-kari. That was the weakness in the stock market; volatility and chips.

The quant is champing at the bit to go short with the algo number 4 points below the signal line but all of the internal parameters did not latch to permit the move. This was surprising considering the bed-sh*tting that occurred overnight. If the SPX drops below 5963, the robot will likely flip short. This is about 50 points below the current price at 6012.

The bears can rule the roost and take over the stock market with force if they push UTIL below 967.90, CPER below 26.54, and/or XRT below 79.70. Bears need weaker utilities, copper, and retail stocks.

UTIL came down to 968 and bounced. Wow. The UTIL 967 is a trap-door for the stock market and it would have mini-crashed if the 967 failed. This is the second time in a couple weeks that UTIL has tested this important metric and bounced. The bull have staved off disaster twice. Can they do it a third time if price comes back down again? If UTIL 967 fails, the SPX will likely drop 20 to 40 points within an hour after the trap-door opens and the stock market will remain in an intermediate term crash profile.

Copper was sneaky as well. CPER came down to 26.59 only a nickel away from failure and creating stock market pain, but alas, the bulls pumped Dr Copper with morphine and told him to get back on the front lines and fight! 

Those are the metrics at play stripping the markets down to their mechanical essence. Evanescence. Bulls need VIX below 16.88 and/or SOX above 5120 to signal the all-clear for the stock market to float higher again. Either metric turning bullish will halt the move lower in stocks. There will be trouble ahead if both remain bearish.

Bears likely need SPX below 5963 to flip the quant short (although it may occur faster if the following parameters fail); CPER below 26.54, and/or XRT below 79.70, and/or UTIL below 967.90. If UTIIL fails below 967, the stock market will likely crash. It's fun. Do you think it'd be all right, if I crashed here tonight? Hey Jealousy. 

2/2/25; 7:00 PM EST EOM =
1/28/25; 10:00 AM EST =
1/27/25; 9:36 AM EST = +16; signal line is +20 but algorithm remains long
1/27/25; 3:06 AM EST = +32; signal line is +19
1/26/25; 7:00 PM EST = +46; signal line is +19