Keybot the Quant remains long but is champing at the bit to go short with the algo number 3 points below the signal line. Banks rallied sending XLF higher out of the gate creating stock market bullishness.
However, utilities fail. This is bigtime. It is surprising that the SPX did not drop more intraday. The utilities failed when the SPX almost tagged 7600 and price rolled over dumping about 35 points in about as many minutes call it a point a minute to the downside intraday but stocks line out sideways on the King Donnie Chump Iran War happy hype.
The SPX prints a new all-time high at 7599.38 and new all-time closing high at 7580.06. The screen printer plans to work all weekend long to produce the "SPX 7.6K" hats that Wall Street wants delivered on Monday morning before the opening bell.
Stocks should have collapsed after the utility trap-door opened, and did with a quick 35-point flush, but are supported on the hope that the Iran War will end and the Strait of Hormuz will reopen. King Donnie massages the markets proclaiming that he is in a meeting to discuss the fate of Iran, and the market gives him the benefit of the doubt into the weekend.
Next week will be all about utes, banks and commodities. The UTIL 1112.42 line in the sand is uber important with price starting Monday at 1109 in the bear camp. What do you think? A potential Black Monday ahead? Everyone is flying in the Danger Zone and they do not know it.
5/31/26;
7:00 PM EST EOM =
5/29/26;
9:50 AM EST = +37; signal line
is +40 but algorithm remains long
5/28/26;
3:36 PM EST = +53; signal line
is +40
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