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

Keybot the Quant remains short as the daily baby drama continues. The bulls are holding on to the record highs waiting for Fed Chairman Powell to provide his swan song speech tomorrow with the rate decision. The robot is idling along unimpressed with the price action and did not print any numbers yesterday.

The bulls send volatility lower maintaining an 18 handle so the bears cannot send stocks lower despite still being in control of the stock market. The bulls have all their eggs in the Fed basket over the next couple days.

If the SPX moves above 7179, Keybot the Quant will likely flip long.

Four metrics are controlling the US stock market currently; volatility, banks, retail stocks and copper. Nothing Else Matters. All are in the bull camp allowing the SPX to print a new all-time record high yesterday, 4/27/26, at 7178.74 and new all-time closing high at 7165.08. The bull/bear lines in the sand are VIX 19.80, XLF 51.00, XRT 84.00 and CPER 35.78, respectively.

If the Fed provides happy talk, stocks will extend their joyousness and the quant will likely flip long. If there is sour talk over the next day or two, there will not be market weakness unless at least one of the four parameters fail. Bears need either higher volatility and/or lower banks, retail stocks and copper.

If stocks start falling apart, use the four metrics to gauge the downside strength. 1 of 4 failing will create subtle negativity. 2 of the 4 turning bearish will introduce notable selling pressure. 3 of the 4 and stocks will begin sliding down the rabbit hole. If all 4 flip bearish, all hope is lost for the stock market.

Keybot the Quant prints a prescheduled number this morning. Maybe it is the calm before the storm? Stormy Monday, a classic blues tune. They call it Stormy Monday, but Tuesday's just as bad, Wednesday's worse, and Thursday also sad, but the eagle flies on Friday (payday) and Saturday I go out to play, Sunday I go to church, and I kneel down and pray.

5/3/26; 7:00 PM EST =
4/30/26; 7:00 PM EST EOM =
4/29/26; 9:00 AM EST =
4/28/26; 10:00 AM EST =
4/26/26; 7:00 PM EST = +68; signal line is +59 but algorithm remains short