STOCK MARKET BULLISH -- LONG -- CAUTION

Keybot the Quant remains long as the bulls stage another big move higher in stocks on Friday, but by the end of the session, most was given back. The bulls are in charge but the algo number is only a paltry 6 points above the signal line.

The bulls are euphoric with the stock market metrics all sitting in their camp maintaining buoyancy and lift in equities. The bears will not be able to create significant downside in stocks unless the VIX moves above 19.80, now at 17.

Copper, banks and retail stocks are the main drivers of stock prices currently. CPER 35.65, XLF 51.04 and XRT 84.03 are the bull/bear lines in the sand. Prices are above for all three creating the bull rally. Bulls must keep prices higher moving higher for all three if they want to continue sending stocks higher.

If any of the three turn bearish, or if the VIX spikes above 19.80, the quant will be in position to go short, and if the SPX is below 7229 trending lower, Keybot the Quant will likely flip short. If 2 or more of the metrics turn bearish, that tells you that stocks are falling down the rabbit hole and when the VIX spikes above 20, all hope will be lost for stocks.

Utilities are worth a mention. As was explained in real-time as the selling drama unfolded in March, the reason the stock market did not crash was because of the buoyant utilities. Utes were driven higher by the market makers to limit the downside. Now some time has passed and the utilities are set up to be in trouble in about 3 weeks time. The bulls must jam UTIL (same as DJU) higher and higher to stave off the bears that are coming down the street. Where the Streets Have No Name. If stocks begin pulling back, and UTIL is at the current levels or lower in about 3 weeks, say the end of the month, there is a high likelihood that the US stock market will fall into a crash profile (stocks will collapse from -10% to -30% maybe more). It is exciting stuff.

Keybot the Quant prints two prescheduled numbers this week both on Friday morning one before the open and one after. The bulls are driving the bus but Dr Copper, Joe Retailer and Barry Bankster are wresting for control of the wheel. Copper, retail stocks and banks only need to drop about -1.6% each to create stock market trouble so maintain a hairy eyeball on these parameters. Hard Times by Paramore.

5/10/26; 7:00 PM EST =
5/8/26; 10:00 AM EST =
5/8/26; 9:00 AM EST =
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