STOCK MARKET BULLISH -- LONG -- CAUTION

Keybot the Quant remains long with the algo number 16 points above the signal line. It was an uneventful week until the robot when crazy on Thursday spitting out eight numbers. The whipsaw choppiness continues with big stock market moves occurring intraday depending on how the oil winds blow (stocks are moving inversely to oil and oil moves depending on Middle East news).

Bulls need banks to prove that up is the direction forward for the stock market but they did a pitiful job at that last week. Bulls need XLF above 56.30 to start bragging about new record highs for stocks. Bulls also need stronger retail stocks and utilities.

Remember, the collapse in utes, now down -15% in only 9 weeks, is an ominous sign for the stock market going forward. Typically, the stock market follows utes lower into the abyss within zero to 8 weeks and the drama is at 9 weeks now. Something has got to give.

The bears need to regroup and send chips lower, copper lower, the NYA index lower and volatility higher. The SOX will need to drop about -5% to help the bears so watch the AI news for any negativity. Bears need CPER below 39.55 and NYA below 23280 and this is about a -2.5% drop in each for the bears to growl again.

Bears need VIX above 16.41 or they got buptkis. Even if the metrics above turn bearish, and even if the quant flips short, the bears got nothing until volatility rises. The downside damage to stocks begins when VIX pops above 16.41 moving higher.

Keybot the Quant prints three prescheduled numbers this week; one on Tuesday morning shortly after the cash open, another on Wednesday evening to close out the month and Q3, and the third on Friday morning before the opening bell. Watch banks, copper and volatility. Don't You Worry 'Bout a Thing by Stevie. Real musical talent.

10/4/26; 7:00 PM EST =
10/2/26; 9:00 AM EST =
9/30/26; 7:00 PM EST EOM EOQ3 =
9/29/26; 10:00 AM EST =
9/27/26; 7:00 PM EST = +4; signal line is -12
9/25/26; 10:00 AM EST = +4; signal line is -12
9/24/26; 12:21 PM EST = +4; signal line is -12
9/24/26; 12:12 PM EST = -10; signal line is -11
9/24/26; 10:58 AM EST = +4; signal line is -11
9/24/26; 10:35 AM EST = -10; signal line is -10 but algorithm remains long
9/24/26; 8:13 AM EST = +4; signal line is -10
9/24/26; 7:44 AM EST = -10; signal line is -9 but algorithm remains long
9/24/26; 7:28 AM EST = +4; signal line is -8
9/24/26; 4:17 AM EST = -10; signal line is -8 but algorithm remains long
9/21/26; 11:15 AM EST = +4; signal line is -7; go long 7728 (Benchmark SPX for 2026 = +12.9%)(Keybot algo this trade = -4.4%; Keybot algo for 2026 = -4.4%)(Actual results this trade = -8.2%; Actual results for 2026 = -12.6%)