STOCK MARKET BULLISH -- LONG -- CAUTION -- TURN MAY BE IMMINENT

Keybot the Quant flips to the long side at munch time today at SPX 7534. Welcome to Crazyville it is down the road from Rockville. Yesterday, the quant flipped short but by the end of the session, it wanted to whipsaw back to the long side. Today, the robot flips to the long side but by the end of the session, it wants to whipsaw back to the short side. The US stock market is extremely unstable and erratic.

Copper and utilities are running the show today. The price action is bazaar with copper and utes turning bullish but if you get a cup of coffee, by the time you get back they are bearish. Markets are all over the place flinching at shadows.

UTIL 1151.70 is a bull/bear line in the sand for one more day and is then replaced with 1173.99 for all of next week. Price is at 1143 creating market negativity. The bulls have their work cut out for them because they must not only move price above 1152 tomorrow, but then above 1174 by the closing bell to be properly set up for next week. That is a tall order. The other utility line in the sand is 1120 and price is not far away at 1143. Bulls win above 1152 and set up a happy stock market for next week if 1174 and higher is achieved by the closing bell. Bears need UTIL below 1120 to introduce negativity with stocks slumping lower. Is that clear as mud?

CPER 37.79 is a line in the sand and price is at 37.75 only 4 pennies away. If copper is positive overnight into tomorrow, stocks are going to rally higher. If, however, CPER remains below 37.79 heading lower, a pall will be cast over the stock market.

Commodities are important with the GTX 5128 line in the sand with price at 5047. Same dealio as copper.

Also watch retail stocks to see if XRT falls below 85.62 that will create negativity.

If the SPX slips below 7482, Keybot the Quant will likely whipsaw back to the short side. This is a -62 point drop, however, and a formidable task.

The bulls need stronger utes, copper and commodities. The bulls will be back in business and happy into the weekend if either UTIL moves above 1152, CPER above 37.79, and/or GTX above 5128. Any 1 of the 3 flipping bullish will cause the bulls to puff their chests. 2 of 3 turning bullish will create bigtime upside in stocks and if all 3 flip bullish, the SPX is likely headed to new all-time record highs.

On the last trade that ran for about 8 hours, the quant program loses a percent and the actual trading loses -2%. The benchmark SPX is up +10% this year. The quant program is up +3% this year with the actual trading down a percent. The market gyrations create an extremely difficult environment for quants to function. The whipsaw causes the robot to drop down into the single ETF's for 30 days to lower risk. Keybot the Quant exits SDS and enters SPY.

Utilities and copper will tell you who wins tomorrow.

7/12/26; 7:00 PM EST =
7/9/26; 3:33 PM EST = +34; signal line is +45 but algorithm remains long
7/9/26; 12:24 PM EST = +50; signal line is +45; go long 7534 (Benchmark SPX for 2026 = +10.1%)(Keybot algo this trade = -1.1%; Keybot algo for 2026 = +3.2%)(Actual results this trade = -2.2%; Actual results for 2026 = -1.4%)
7/9/26; 11:11 AM EST = +50; signal line is +44 but algorithm remains short
7/9/26; 11:02 AM EST = +66; signal line is +43 but algorithm remains short
7/9/26; 10:38 AM EST = +50; signal line is +42 but algorithm remains short
7/9/26; 10:31 AM EST = +66; signal line is +41 but algorithm remains short
7/9/26; 9:48 AM EST = +50; signal line is +40 but algorithm remains short
7/9/26; 9:44 AM EST = +34; signal line is +39
7/8/26; 12:55 PM EST = +50; signal line is +40 but algorithm remains short
7/8/26; 12:15 PM EST = +34; signal line is +39
7/8/26; 11:20 AM EST = +18; signal line is +39
7/8/26; 10:39 AM EST = +34; signal line is +40; go short 7451 (Benchmark SPX for 2026 = +8.8%)(Keybot algo this trade = -0.2%; Keybot algo for 2026 = +4.3%)(Actual results this trade = -0.6%; Actual results for 2026 = +0.8%)