Keybot the Quant remains short as the stock market drama continues. It is odd times with odd price action. The bears are in control with the algo number 21 points below the signal line but no one told the bulls that keep rallying stocks.
Watch utes, chips and retail stocks, specifically, UTIL 1112.15, UTIL 1092.72, SOX 12130 and XRT 88.05, respectively. UTIL is at 1096 below 1112.15 creating negativity in the stock market. This number is meaningless at 4 PM EST today and replaced with 1092.72 for all of next week. If price finishes above 1093 today, that is a feather in the bulls cap come Monday. If, however, as price slips away today, UTIL closes below 1093, that sets up for bigtime negativity in the stock market next week. If you have a lot of longs, you should gird your loins and consider lightening up into the weekend if you see utes taking the pipe. One or the other outcomes will occur this afternoon.
Chips and retail stocks are creating negativity so bulls need prices above those lines in the sand. If so, the fix is in and the stock market is fine. If UTIL 1093 is lost today, that means big trouble, and if the VIX pops above 17.22, it is over for the stock market. For now, it is a coin-flip until one of the above metrics flinch.
At about 10 AM EST, UTIL is 1099, SOX is 11794 and XRT is 87.38. The status is quo, so far. Jane Says she does not know what to do. Dig the steel drum sound.
8/23/26;
7:00 PM EST =
8/20/26;
12:07 PM EST = +4; signal line
is +25
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