Keybot the Quant remains short as the circus atmosphere continues. Utilities, chips and retail stocks are running the show and all three are in the bear camp creating the negativity in today's tape.
Bears need weaker copper and higher volatility to confirm the path to carnage. Bulls need stronger utes, chips and retail stocks. More retail stock yearnings are on tap this week.
The bears are in charge, although you would not know it since the stock market has rallied higher, with the algo number 21 points below the signal line. Things can change quickly as evidenced by today's action with the quant spitting out six numbers.
UTIL 1112.15, SOX 12147, XRT 88.10, CPER 38.83 and VIX 17.22 are the bull/bear lines in the sand you can watch the rest of the week. Utes, semi's and retail stocks are bearish creating negativity in the stock market while copper and volatility remain in the bull camp telling everyone the selling is no biggie.
Bears need CPER below 38.83 and/or VIX above 17.22 to start slashing deeply creating big wounds. If VIX pops above 17.22, it is over for the bulls. Stocks will fall apart.
Bulls need UTIL, or DJU, above 1112.15, and/or SOX above 12147 and/or XRT above 88.10. If retail earnings are beats, you will know the fix is in and bulls will stage a comeback starting with a rally in XRT. Overnight chip hype will send the semiconductors higher that will create higher stocks.
The stage is set. Five parameters. Simply gauge stock market direction by the interplay of these five metrics. Pay attention to copper and volatility. If these are lost to the bear camp, the drop in stocks may be quite dramatic and the slashing will begin in earnest. The First Cut Is the Deepest. Sheryl is singing a Cat Stevens tune he wrote back in the 60's. He calls himself Yusuf nowadays. Sheryl Crow has been hanging out in Nashville the last couple decades. She has a scar on her head from early days playing in a routy biker bar when someone threw a beer bottle and it hit her in the face. That's a rough crowd. Sometimes you will see chicken wire fence covering the entire space in front of a stage to stop the projectiles. Her parents were musicians and music teachers; she plays a couple dozen instruments.
8/23/26;
7:00 PM EST =
8/18/26;
2:24 PM EST = +4; signal line is
+25
8/17/26;
10:10 AM EST = +36; signal line
is +29 but algorithm remains short
8/17/26;
9:49 AM EST = +20; signal line
is +29
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