STOCK MARKET BEARISH -- SHORT -- CAUTION

Keybot the Quant remains short as the oddball price action continues. Chips roar to life and dance around the trading floor like the flighty girl at a high school dance. Everybody wants to influence the chips, including the bull and bear camps, so the battle was on yesterday and may continue today. The algo spits out six numbers yesterday reflecting the semiconductor bull/bear battle.

Bulls need SOX above 11940 an easy lift if they ate their spinach and show up to play. If SOX rallies higher above 11940, consider the imminent turn to the long side to be in play, and if the SPX ventures above 7718, Keybot the Quant will likely flip long.

Bulls also need UTIL, or DJU, above 1110 with price at 1093. The failure in utes for a few weeks running is a bad omen for the stock market but who knows if the tried and true rules of the past still hold?

Bears are in control with the algo number 6 points below the signal line but that is nothing to write home about. Copper leaps higher yesterday the orgy in the red metal is unstoppable. Traders are buying this other yellow metal with both fists. Bears need weaker copper if they want to pull stocks lower.

Bears need weaker banks and for XLF to drop below 56.62. You will see the stock market notably weaken if this occurs. Bears need VIX above 16.64 to create carnage. A higher VIX will signal that pain and misery is the path ahead for stocks. Bears got nothing if the VIX remains sub 16.64.

Thus, stock market direction is a battle of bearish utes and chips versus bullish banks and volatility. One of the four will flinch and tell you the direction forward.

The cash open is 3-1/2 hours away for hump day, and the VIX is at 16-ish. SMH (chips) is trading lower in the pre-market. Utilities flat. XLF is a hair negative in early trading. It is Wednesday, so some Goo Goo Muck, the old Cramps tune, that is now new again, is in order. Gen Z'ers have a lot in common with the cool folks from the late 1960's, 70's, and early 80's; the two generations are in sync.

9/13/26; 7:00 PM EST =
9/11/26; 10:00 AM EST =
9/8/26; 2:54 PM EST = +4; signal line is +10
9/8/26; 2:12 PM EST = +20; signal line is +10 but algorithm remains short
9/8/26; 2:03 PM EST = +4; signal line is +10
9/8/26; 1:07 PM EST = +20; signal line is +11 but algorithm remains short
9/8/26; 12:36 PM EST = +4; signal line is +11
9/8/26; 10:58 AM EST = +20; signal line is +12 but algorithm remains short
9/6/26; 7:00 PM EST = +4; signal line is +12