STOCK MARKET BEARISH -- SHORT -- CAUTION

Keybot the Quant flips to the short side yesterday at munch time at SPX 7198 as this year's choppy slop continues. The bears control the stock market ball with the algo number 24 big points below the signal line. Copper failed yesterday and then retail stocks followed the red metal down the primrose path.

However, copper recovers big this morning showing that the bulls plan to fight back. Copper and the stock market are moving in sync. As copper goes, so goes the stock market. CPER 35.70 is the line in the sand and price will likely jump back above, returning to the bull camp, today.

That leaves retail stocks as the major arbiter of stock market direction. XRT 84.10 is the bull/bear line in the sand. Price is below, in the bear camp, creating stock market negativity. Watch it in the premarket since it will tell you if the bears have juice, or not. Bulls will want the stock market ball back if XRT pops above 84.10 but they likely need to push the SPX above 7244-7253 for the quant to flip long.

On the last trade, that ran for a couple days, the quant program and the actual trading generated by the quant log marginal gains. For the year thus far, the benchmark SPX is up +5.1%, the quant program is up +3.3% and the actual trading is up +1.1%, an uneventful year as far as returns go. This is the year of choppy sideways slop. Keybot the Quant exited SSO and entered SDS remaining in the 2x leveraged ETF's.

Watch copper and retail stocks as explained above. Also, banks. XLF 51.04 is the line in the sand and price is only about a percent away, percent away, percent away, like the song a shot away, shot away, we need some Fergie. Mick always steals the show. Gimme Shelter. The banksters may fail so maintain a hairy eyeball on those crooks.

5/10/26; 7:00 PM EST =
5/8/26; 10:00 AM EST =
5/8/26; 9:00 AM EST =
5/4/26; 12:02 PM EST = +37; signal line is +61
5/4/26; 11:22 AM EST = +53; signal line is +63; go short 7198 (Benchmark SPX for 2026 = +5.1%)(Keybot algo this trade = +0.3%; Keybot algo for 2026 = +3.3%)(Actual results this trade = +0.8%; Actual results for 2026 = +1.1%)
5/3/26; 7:00 PM EST = +69; signal line is +63
4/30/26; 7:00 PM EST EOM = +69; signal line is +63
4/30/26; 12:14 PM EST = +69; signal line is +63; go long 7175 (Benchmark SPX for 2026 = +4.8%)(Keybot algo this trade = -1.1%; Keybot algo for 2026 = +3.0%)(Actual results this trade = -1.8%; Actual results for 2026 = +0.3%)