STOCK MARKET BEARISH -- SHORT -- CAUTION

Keybot the Quant remains short with the algo number only 2 measly points below the signal line. That is nothing to write home about so the bulls and bears continue battling.

All of you know what it is all about, right? Utes, and banks and volatility, oh my. Sounds like the Wizard of Oz and lions, and tigers and bears, oh my. Judy Garland was a sweetheart, with such a tragic ending to her life. What a voice.

Volatility is key with VIX 16.91 the bull/bear line in the sand and price at 16.09 creating stock market bullishness. Bears obviously need VIX above 16.91 if they want to do damage.

UTIL 1067 is a key bull/bear line in the sand and price is at 1074. Stocks will quickly fall apart and potentially crash if 1067 gives way. Watch it closely.

The banksters line in the sand is XLF 54.17 with price starting the week at 53.07 creating negativity in the stock market. The financials, insurers and large money-center banks are where they were at 6 weeks ago with television pundits telling folks to buy, buy, buy every step of the way. Regional banks have been winners. Banks are the key for the bulls. The bulls need XLF above 54.17 to signal the all-clear. Watch it in the pre-market tomorrow morning.

Bears need higher volatility, that will create another leg lower for stocks, and then if UTIL, or DJU, drops below 1067, it is lights out. Anyone long the stock market will regret it.

Bulls need to push XLF back above 54.17 and the happy upside will continue. If XLF moves above 54.17, consider the imminent turn to be in play, and if the SPX moves above 6933, Keybot the Quant will likely flip long. Watch volatility, utilities and banks and you will know what direction the stock market is going.

Keybot the Quant prints one prescheduled number this week on Tuesday morning. The last day of trading for January is Friday. Time flies when you're having fun. The VIX will tell you a lot in overnight trading. Donna Summer was Hot Stuff in the disco era. How's 'bout some hot stuff baby, tonight?

2/1/26; 7:00 PM EST EOM =
1/27/26; 10:00 AM EST =
1/25/26; 7:00 PM EST = +24; signal line is +26
1/23/26; 10:00 AM EST = +24; signal line is +27
1/21/26; 3:59 PM EST = +24; signal line is +27