STOCK MARKET BEARISH -- SHORT -- CAUTION

Keybot the Quant flips to the short side yesterday at SPX 7403. The choppy whipsaw pig slop continues. The bears are in control of the stock market direction with the algo number 14 points below the signal line. Utilities and volatility are running the show. Markets remain erratic and unstable.

The negativity in utilities and spike higher in volatility usher-in yesterdays stock market weakness. UTIL 1158.11 and VIX 19.18 are the lines in the sand. VIX is at 19.40 in real-time starting to decorate its bear pad and create market weakness. UTIL 1124 is another line in the sand that may come into play if the price, now at 1141, continues lower.

Obviously, the bulls need UTIL above 1158 and/or VIX below 19.18. Either one would position the quant to flip long again in these chop suey markets. Bulls will be back in biz if both turn bullish.

Bears need UTIL below 1124 that will bring about a far lower stock market. Bears also need weaker copper but the red metal remains resilient and bullish propping up stocks. Copper futures are up over a couple percent this morning.

On the last trade that ran for a big two days, the quant program and the actual trading each lose a percent. Comically, it is death by a thousand cuts. For the year thus far, the benchmark S&P 500, that is the US stock market, is up +8%. The quant program is dead flat. Isn't that something. Seven months of drama and the computer program is exactly where it was at on January 1. Nowhere Man. The actual trading generated by the quant program is down -4% on the year thus far underperforming the benchmark by 12 percentage-points. The markets are trendless so the bulls and bears are chewed-up in the sideways meat grinder. Keybot the Quant exits DIA and enters PSQ.

Watch utilities and volatility for market direction. Also, keep a hairy eyeball on the banks and retail stocks. Copper appears to be in party mode again. 

8/2/26; 7:00 PM EST EOM =
7/31/26; 10:00 AM EST =
7/29/26; 3:39 PM EST = +22; signal line is +36
7/29/26; 2:06 PM EST = +36; signal line is +37
7/29/26; 10:05 AM EST = +22; signal line is +37; go short 7403 (Benchmark SPX for 2026 = +8.1%)(Keybot algo this trade = -1.0%; Keybot algo for 2026 = +0.0%)(Actual results this trade = -0.8%; Actual results for 2026 = -4.4%)
7/29/26; 10:01 AM EST = +38; signal line is +38 but algorithm remains long
7/29/26; 9:53 AM EST = +52; signal line is +37
7/28/26; 3:57 PM EST = +36; signal line is +36 but algorithm remains long
7/28/26; 10:06 AM EST = +52; signal line is +36
7/28/26; 10:00 AM EST = +38; signal line is +35
7/28/26; 9:48 AM EST = +38; signal line is +35
7/28/26; 9:36 AM EST = +52; signal line is +35
7/27/26; 3:26 PM EST = +36; signal line is +35
7/27/26; 3:12 PM EST = +52; signal line is +36
7/27/26; 2:56 PM EST = +36; signal line is +36 but algorithm remains long
7/27/26; 2:25 PM EST = +52; signal line is +37
7/27/26; 12:58 PM EST = +36; signal line is +37 but algorithm remains long
7/27/26; 9:36 AM EST = +52; signal line is +37; go long 7479 (Benchmark SPX for 2026 = +9.3%)(Keybot algo this trade = -0.8%; Keybot algo for 2026 = +1.0%)(Actual results this trade = -0.7%; Actual results for 2026 = -3.6%)