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

Keybot the Quant remains short despite the algo number 6 points above the signal line, hence, the turn may be imminent. The internal parameters will not fully latch to permit the move yet. If the SPX moves up towards 7420-ish and higher, Keybot the Quant will likely flip long. Stocks should resolve this week one way or the other.

Utilities jump back into the picture after disappearing into the background the last couple months. If UTIL, or DJU, loses 1107, the stock market will be in trouble. UTIL begins the week at 1112. Any drop below 1090-ish over the next couple weeks will spell double trouble. Stevie Ray and Double Trouble with Pride and Joy. The utilities will be challenged greatly starting 5/26/26, the day after Memorial Day when US markets reopen. UTIL must be above 1171, a formidable task, during the last week of May or the stock market will be under duress.

Retail stocks, banks and volatility are also metrics at play impacting stock market direction. All are bullish, like utilities, to begin the week. XRT 84.19, XLF 51.10 and VIX 19.92 are the bull/bear lines in the sand. Retail stocks and banks are near their danger points that will create stock market negativity so watch them closely.

The VIX has a 17 handle and will need at least two sticks higher to create stock market negativity. However, if you see the VIX pop above 19.92, stocks will be falling down the rabbit hole.

As previously highlighted, it is odd that the robot has not flipped long over the last three days, very odd. Bulls likely win with the quant flipping long at SPX 7420-ish and higher, or, the bears are back in business if utes, retail stocks, banks or volatility turn negative. XLF is only 14 pennies away from negativity so the bankster bulls better come to the markets on Monday with lots of energy, otherwise, the financials may lead things lower.

Keybot the Quant does not print any prescheduled numbers this week so the movement of the robot depends on the parameters explained above. We need some more blues. How about Sue Foley, the Ice Queen, singing Queen Bee. It does not get any better than that.

5/17/26; 7:00 PM EST =
5/10/26; 7:00 PM EST = +69; signal line is +63 but algorithm remains short
5/8/26; 10:00 AM EST = +69; signal line is +63 but algorithm remains short