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

Keybot the Quant remains short in these topsy-turvy markets. Of course, in the craziness, the algo number and signal line are the same so the bulls and bears are battling back and forth with swords on the castle wall each trying not to fall off. Someone will win.

The chips failed out of the gate on Friday morning but the bulls pumped retail stocks to prevent any significant downside in the stock market. Utilities, retail stocks, copper, volatility and chips are the moving parts impacting stock market direction currently.

Utilities are key at the opening bell tomorrow morning. UTIL begins at 1173 above the 1158.11 line in the sand for all of next week. This will create bullishness in the stock market right away. Bears need to find a way to send UTIL below 1158, otherwise, they will end up with buptkis.

Same idea with volatility. Bears need VIX above 19.60 to prove they got game. It stocks sell off but the VIX does not go above 19.60, the bears got nothing and stocks will reverse to the upside.

Copper is also key. Bears need copper futures to drop -1.3% to create downside fuel for the stock market. The trading in copper and volatility overnight will provide a heads-up on how the US trading day will be, and keep in mind that utes are probably going to create lift in stocks.

Since utilities may turn bullish at the open, that means the quant will likely want to whipsaw back to the long side. The bulls, however, will also need the SPX to rally above 7461 heading higher so watch to see if S&P futures are up about +50 points. If UTIL is above 1158, and the SPX above 7461, Keybot the Quant will likely flip long, hence the imminent turn notation in the title line.

Bulls need stronger semiconductors and if SOX moves above 12230, they are back in business for lots more upside in stocks. This, however, equates to about a +3.5% rally in chips.

Since the retail stocks were pumped to prevent Friday from collapsing, watch XRT 86.70. Price begins at 87.01 so the bears need about a -0.4% drop in XRT to bolster the case for more downside in stocks.

Bulls need UTIL above 1158 and that may be a given, and SPX above 7461 to flip the quant long, and SOX above 12230 will guarantee more bullish joy ahead.

Bears need to pull XRT below 86.70 right away since that will nullify a lot of the utility joy. Bears also need CPER below 37.85, VIX above 19.60 and UTIL below 1158 to create serious downside carnage for the stock market.

Keybot the Quant prints two prescheduled numbers this week one on Tuesday morning and the other Friday morning, both after the opening bells, and the July month of trading ends on Friday with August trading starting next Monday. The market has more moving parts than Tina Turner. What a great entertainer. Everybody loves Tina.

8/2/26; 7:00 PM EST EOM =
7/31/26; 10:00 AM EST =
7/28/26; 10:00 AM EST =
7/26/26; 7:00 PM EST = +36; signal line is +36 but algorithm remains short
7/24/26; 11:16 AM EST = +36; signal line is +37
7/24/26; 9:36 AM EST = +20; signal line is +38
7/23/26; 3:59 PM EST = +36; signal line is +39