STOCK MARKET BULLISH -- LONG -- CAUTION

Keybot the Quant is long with the algo number 12 points above the signal line. The bulls pull off another stick-save after the UTIL 1063 trap-door opened and began swallowing-up the stock market. UTIL was jammed higher on Friday with AI hype talk creating the joy in equities.

UTIL 1063 remains the key bull/bear line in the sand with price starting at 1069. Will she fail again?

The bulls are faced with a formidable task. To prove they got game, the bulls must push UTIL, or DJU, above 1124.60 this week, another bull/bear line in the sand. That is a 55-point gain in utilities that the bulls need; can they do it?

The bulls are in charge of stock market direction currently. Bulls need UTIL above 1124 to take stocks to all the high predictions that Wall Street says are on the come.

Bears simply need UTIL to drop below 1063 to create stock market turmoil. If UTIL loses 1063, and the SPX drops below 6918, Keybot the Quant will likely flip short, however, this is a formidable task for the bears having to send the S&P 500 about 48 points lower. This is the situation creating choppy slop.

The market may take out UTIL 1063 Monday and then wait until Tuesday to rain down Hell. The bulls have a tough road to hoe to send utes strongly higher but for the week ahead, simply watch if there is strength appearing in utilities. Bulls would need, say, a move above 11-hundo by the end of the week that would set them up for higher ute prices the week after that.

If bears push UTIL below 1063, watch volatility. If the VIX remains below 16.89, the bears have buptkis, and stocks will remain flat and want to recover. If VIX pops above 16.89, this is confirmation that it is time for mayhem and blood and carnage on Wall and Broad.

The drama in the week ahead will revolve around bank earnings, inflation data, Fed speak, and of course, the ongoing AI hype parade. There are no prescheduled numbers for the week ahead. Utilities will tell you who wins. Bob Weir croaked. Keep on Truckin', Bob. LSD sales will decrease. Busted, down on Bourbon Street.

1/18/26; 7:00 PM EST =
1/11/26; 7:00 PM EST = +40; signal line is +28
1/9/26; 10:00 AM EST = +40; signal line is +27