STOCK MARKET BEARISH -- SHORT -- CAUTON

Keybot the Quant remains short as the stock market continues a goofy confusing path. Retail stocks sh*t the bed yesterday collapsing -4% so it is time to buy new sheets at BBBY that crashed -7% yesterday. Retail stocks created the broad stock market negativity.

Then financials fell into the bear camp that had potential to send everything south but the bulls fought back pulling the banksters and insurance companies back into the bull camp. I Fought the Law.

Thus, therein lies the battle for market control. Retail stocks versus banks. XRT 84.05 and XLF 51.11 are the bull/bear lines in the sand. Retail stocks are causing negativity while banks are helping the stock market remain buoyant. Bulls can recover if they push XRT back above 84 but that is a formidable task with price now sporting an 81 handle. XLF is trading at 51.19 in the premarket only 8 cents away from creating havoc in the stock market.

Utilities were goosed by the market makers yesterday because they knew the ramifications if they fail. UTIL 1109 is the line in the sand with price at 1125 so watch to see if the utes will create negativity.

Also, volatility. VIX 20.13 is the line in the sand with price at 18.75 maintaining buoyant stock indexes. Bears need the VIX above 20 and that is when you will see the stock market fall apart. Bulls are okay under 20.

For now, the bears maintain control of the stock market, despite fumbling and bumbling with the ball the last few days, with the algo number 9 points below the signal line. Retail stocks, banks, utes and volatility are the four drivers of the stock market direction currently.

King Donnie Trumpski's Iran War messaging will continue impacting markets. WTIC crude oil moves above one hundo, check that, now above 101, creating a soggy mood for stocks today. The Soggy Bottom Boys sing I Am a Man of Constant Sorrow.

5/17/26; 7:00 PM EST =
5/11/26; 12:28 PM EST = +53; signal line is +62
5/11/26; 12:10 PM EST = +37; signal line is +62
5/11/26; 9:37 AM EST = +53; signal line is +63
5/10/26; 7:00 PM EST = +69; signal line is +63 but algorithm remains short