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

Keybot the Quant remains short through the stock market turmoil today. King Donnie Chumpski, of course after the told his family and friends to go long, proclaimed that Iran has agreed to a deal. Volatility collapses and stocks launch higher like a rocket. The day takes on a festive atmosphere after Donnie intervened to pump equities higher at 1:30 PM EST.

Volatility is the main driver of stock market direction this week so far. The VIX remained above the critical 20.76 line in the sand so the bears were smiling. Then, when Trumpski proclaimed that Iran agreed to a deal, the VIX collapses to a 19 handle. Comically, an hour after Donnie's decree, both Iran and Israel say deal? What Deal? Who? Lebanon, too. Donnie was blowing some smoke but people do not care since they are too busy buying stocks sending the indexes into the stratosphere recovering all of yesterday's losses then some.

Keybot the Quant is champing at the bit to go long with the algo number 12 points above the signal line but the internal parameters are not yet fully latched. The robot will likely flip long tomorrow if the SPX moves above 7413 so watch to see if the S&P futures are up +19 points overnight.

Bears need VIX above 20.76 to maintain control of the stock market. Bears will be helped by higher volatility and lower banks and commodities.

Bulls need SPX above 7413 to open the door to higher prices. Bulls will also be helped if utilities rally. A signal line at 25 is serving as a baseline. In the year 2525, if man is still alive, if woman can survive.... Zager & Evans. 

6/14/26; 7:00 PM EST =
6/12/26; 10:00 AM EST =
6/11/26; 1:38 PM EST = 37; signal line is +25 but algorithm remains short
6/11/26; 8:24 AM EST = 23; signal line is +25
6/11/26; 8:03 AM EST = 37; signal line is +25 but algorithm remains short
6/11/26; 7:01 AM EST = 23; signal line is +24
6/11/26; 4:07 AM EST = 37; signal line is +24 but algorithm remains short