STOCK MARKET BEARISH -- SHORT -- CAUTION -- TURN MAY BE IMMINENT

Keybot the Quant remains short as the erratic and unstable market activity continues. These are some of the craziest markets you will ever see. The algo prints 4 numbers today including 2 pre-scheduled numbers.The Keybot the Quant algorithm is pegged at +100 again the maximum possible bullish reading. The algo is champing at the bit to go long but the internal parameters are not latching to permit the move as yet. Note how UTIL overtook the key 655.00 level this afternoon ditto RTH overtaking the key 76.55 level. The bulls stopped the downward slide in the stock market by pumping utilities and retail stocks higher in the afternoon session.

RTH 76.55 is key at tomorrow's (Wednesday) opening bell. RTH begins at 76.58 only 3 cents on the bull side. This is for all the marbles. UTIL 655 is also key with price at 668.87 nearly 4 points above helping the bulls. Since the algorithm wants to go long, looking at some parameters, if the SPX moves above 2279, which is a gain of less than one point, Keybot will likely flip long at the opening bell, hence the imminent turn is in play. However, if stocks gap up strongly, a timer will likely trigger to prevent the move to the long side for about 90 additional minutes. The bulls would be smarter to send price slowly and steadily higher. Obviously the bears need to see red in the S&P futures overnight or they will likely be slapped around receiving lumps on hump day.

For Wednesday, with the SPX starting at 2279, the bulls need any smidge of green in the futures and price will accelerate several handles higher to 2285 in a heartbeat and Keybot will likely flip long. The bears need to push under 2267 to accelerate the downside. A move through 2268-2278 is sideways action for Wednesday. The FOMC rate decision occurs in the afternoon.

2/5/17; 7:00 PM EST =

2/3/17; 9:00 AM EST =

1/31/17; 7:00 PM EST EOM = +100; signal line is +80 but algorithm remains short

1/31/17; 3:27 PM EST = +100; signal line is +79 but algorithm remains short

1/31/17; 11:07 AM EST = +84; signal line is +79 but algorithm remains short

1/31/17; 10:00 AM EST = +68; signal line is +81

1/30/17; 2:06 PM EST = +68; signal line is +81

STOCK MARKET BEARISH -- SHORT -- CAUTION

Keybot the Quant flips to the short side after this morning's bell at SPX 2282. The SPX gapped-down at the opening bell but not enough to trigger the delay timer so the algo flipped to the short side in quick order. As the day played out, note that UTIL came down to test the 655, and failed, but minutes later recovered. The authorities stepped in. Utilities ran higher off the low into the closing bell. Isn't it amazing that the quant can identify these key areas and the key levels in these areas  before they occur?

Retail stocks recovered during the session; the bulls know they need stronger retial stocks if they want to stop the downward slide in equities. Watch RTH 76.55 with price now at 76.36 only 19 pennies below creating market negativity. If RTH moves above 76.55, the bears got nothing and stocks will rally. Bears need to push UTIL under 655 now at 658 to open the door to a leg lower for the stock market. The bulls would be helped by UTIL moving above 664.

For Tuesday, with the SPX starting at 2281, the bulls need to push above 2286 to accelerate the upside. If RTH moves above 76.55, consider the imminent turn to be in play and if SPX takes out 2286 to the upside then Keybot will likely whipsaw back to the long side. The bears need to push  the SPX under 2268 to accelerate the downside. A move through 2269-2285 is sideways action for Tuesday. Keybot prints two pre-scheduled numbers today.

For the last trade, that lasted less than one week, the benchmark SPX index is up +1.9% on the year and the Keybot computer program is down -2.6% on the year. Both the algo program and actual trading gained about one-half percent on the last trade. The actual trading is down -6.3% thus far this year. At least the last trade is going in the correct direction now. The algo remains in single ETF  mode and exited SPY and entered SH.

Markets remain erratic and unstable so anything can happen.  Stay alert for a potential whipsaw back to the long side. Watch RTH 76.55 (bulls  need higher retail stocks) and UTIL 655 (bears need lower utilities)  like a hawk; these two parameters will tell you the broad market direction story for Tuesday.

2/3/17; 9:00 AM EST =

1/31/17; 7:00 PM EST EOM =

1/31/17; 10:00 AM EST =

1/30/17; 2:06 PM EST = +68; signal line is +81

1/30/17; 1:34 PM EST = +52; signal line is +81

1/30/17; 9:35 AM EST = +68; signal line is +82; go short 2282; (Benchmark SPX for 2017 = +1.9%)(Keybot algo this trade = +0.4%; Keybot algo for 2017 = -2.6%)(Actual results this trade = +0.5%; Actual results for 2017 = -6.3%)

1/29/17; 7:00 PM EST = +68; signal line is +82 but algorithm remains long

1/27/17; 10:00 AM EST = +68; signal line is +82 but algorithm remains long

1/27/17; 9:43 AM EST = +68; signal line is +81 but algorithm remains long

1/24/17; 11:40 AM EST = +84; signal line is +81; go long 2272; (Benchmark SPX for 2017 = +1.5%)(Keybot algo this trade = -0.4%; Keybot algo for 2017 = -3.0%)(Actual results this trade = -1.6%; Actual results for 2017 = -6.8%)

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

Keybot the Quant is long as the new week of trading begins but the algo wants to go short. The algo number is 14 points below the signal line. If the SPX drops under 2292, Keybot will likely flip short, however, the market bears need a gentle move lower. If stocks gap down at the opening bell, the model may trigger a timer that will hold off the move to the short side for 90 minutes.

Retail stocks and utilities are the two sectors most impacting broad stock market direction currently. Watch RTH 76.60 now at 76.10 creating negativity in stocks. Bears must maintain the RTH under 76.60 while the bulls will be trying to push above 76.60 which will kick the stock market rally back into gear.

UTIL begins the week at 657.70. Bears need UTIL under 655.00 which will cause stocks to take a leg lower. Bulls need UTIL above 664.10 which will create bullishness in stocks. If UTIL remains between 655 and 664, and RTH under 76.60, stocks will stagger along sideways.

For the SPX starting at 2295, the bulls need to push above 2299 and bingo, price will be running towards 2305 very quickly. The bears need to push under 2292 and price will collapse to the low 2280's in quick order. A move through 2293-2298 is sideways action for Monday.

The bulls are hanging on by a thread and desperately need either RTH above 76.60 or UTIL above 664.10 to keep the stock market rally going. The longer that prices stay below these levels, the increased likelihood that stocks will roll over to  the downside. The algo also identifies commodities, the Goldman Sachs GTX Index, as a second tier variable that is influencing market direction. Bears need GTX under 2344 (now at 2393) which will create broad market selling.

Keybot prints three pre-scheduled numbers this week; one on Tuesday morning, the second on Tuesday evening for the EOM (end-of-month) and third, on Friday morning before the opening bell. Pay attention to SPX 2292 but the bears need price to move steadily lower through 2292 and not bounce from here as it did on Friday.

2/5/17; 7:00 PM EST =

2/3/17; 9:00 AM EST =

1/31/17; 7:00 PM EST EOM =

1/31/17; 10:00 AM EST =

1/29/17; 7:00 PM EST = +68; signal line is +82 but algorithm remains long

1/27/17; 10:00 AM EST = +68; signal line is +82 but algorithm remains long

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

Keybot the Quant remains long through the weekend. The market bears did not have enough oomph to flip the model short on Friday. The Keybot algo continues champing at the bit to go short. SPX 2292 remains key come Monday morning. Utilities and retail stocks are dictating broad stock market direction currently. UTIL finishes last week at 657.70 above the critical 655.00 level that is in play every day in the new week ahead. Levels of interest for next week can be identified once Keybot prints the pre-scheduled Sunday number tomorrow.

1/29/17; 7:00 PM EST =

1/27/17; 10:00 AM EST = +68; signal line is +82 but algorithm remains long

1/27/17; 9:43 AM EST = +68; signal line is +81 but algorithm remains long

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

Keybot the Quant remains long but is champing at the bit to go short. The algo number is 14 points below the signal line. The algo has motored along the last couple days without printing any numbers but is active today printing one number and also the pre-scheduled number. The necessary internal parameters are not fully latching as yet to permit a move to the short side but the trend change may be imminent.

RTH 76.63 is key and retail stocks collapse under 76 to 75.95 providing bear fuel for the stock market. If the SPX drops under 2292, Keybot will likely flip short. The SPX is printing at 2293 and change as this message is typed a couple minutes before noon time.

Pay attention to UTIL 655.00 at the closing bell since this number is key for markets all next week. UTIL is at 657 now and if it finishes the day under 655 this tells you that the bears will growl strongly to begin next week. The beat goes on.

1/29/17; 7:00 PM EST =

1/27/17; 10:00 AM EST = +68; signal line is +82 but algorithm remains long

1/27/17; 9:43 AM EST = +68; signal line is +81 but algorithm remains long

1/24/17; 11:40 AM EST = +84; signal line is +81; go long 2272; (Benchmark SPX for 2017 = +1.5%)(Keybot algo this trade = -0.4%; Keybot algo for 2017 = -3.0%)(Actual results this trade = -1.6%; Actual results for 2017 = -6.8%)

STOCK MARKET BULLISH -- LONG -- CAUTION

Keybot the Quant is back on the long side as the sideways choppy slop continues. The algo number is 3 points above the signal line so the markets remain dicey. S&P futures are up +7 about three hours before Wednesday's opening bell for the regular session. The VIX collapses to a 10-handle at multi-year lows slapping the bears in the face. Slap, slap.

Bulls need UTIL above 664 to receive more upside juice. Bears need UTIL under 652 and/or RTH under 76.64 to push the stock market lower. Status quo will send stocks sideways to sideways higher. 

For the SPX starting at 2280, the bulls need to touch the 2285 handle and bingo, the S&P 500 will be above 2290 in a heartbeat targeting 2300. The bears need to push under 2267 to regain their downside mojo. A move through 2268-2284 is sideways action for hump day. The beat goes on.

1/29/17; 7:00 PM EST =

1/27/17; 10:00 AM EST =

1/24/17; 11:40 AM EST = +84; signal line is +81; go long 2272; (Benchmark SPX for 2017 = +1.5%)(Keybot algo this trade = -0.4%; Keybot algo for 2017 = -3.0%)(Actual results this trade = -1.6%; Actual results for 2017 = -6.8%)

STOCK MARKET BULLISH -- LONG -- CAUTION

Keybot the Quant whipsaws back to the long side at SPX 2272 about 90 minutes ago as retail stocks rally. The whipsaw is not surprising considering the sideways choppy markets. The price action from December to now is reminiscent of the price action from February 2015 to August 2015. That was 7 months of sideways slop that ate up bulls and bears alike until the markets eventually crashed lower.

RTH 76.64 remains key with price at 76.81 creating upward lift in the stock market. Bears need RTH back under 76.64 and/or UTIL under 651.79 to send stocks lower again. Bulls need UTIL above 664 to confirm more upside and record highs ahead for the stock market.

The SPX is at the HOD at 2277. The bulls are back in control. On the last trade, which only lasted for 7 trading hours, the Keybot algorithm program loses -0.4% and the actual trading loses -1.6%. The actual trading continues to sink as the new year is underway, now down nearly -7%, but will likely correct over time. Since a whipsaw occurs, Keybot drops into the single ETF mode. The markets are far to choppy sideways which only serves to slap both bulls and bears around so leveraged ETF's must be avoided. Keybot exited TWM and entered SPY. The whipsaw action activates a timer that will remain in the single ETF mode for at least 35 days. Perhaps by then the markets will be trending again either up or down.

Stay alert for another whipsaw move  back to the short side which is definitely on the table considering the sideways choppy slop.

1/29/17; 7:00 PM EST =

1/27/17; 10:00 AM EST =

1/24/17; 11:40 AM EST = +84; signal line is +81; go long 2272; (Benchmark SPX for 2017 = +1.5%)(Keybot algo this trade = -0.4%; Keybot algo for 2017 = -3.0%)(Actual results this trade = -1.6%; Actual results for 2017 = -6.8%)

1/24/17; 9:36 AM EST = +84; signal line is +81 but algorithm remains short

1/23/17; 2:03 PM EST = +68; signal line is +81

1/23/17; 1:10 PM EST = +84; signal line is +81 but algorithm remains short

1/23/17; 10:32 AM EST = +68; signal line is +81; go short 2263; (Benchmark SPX for 2017 = +1.1%)(Keybot algo this trade = -0.8%; Keybot algo for 2017 = -2.6%)(Actual results this trade = -1.6%; Actual results for 2017 = -5.2%)

STOCK MARKET BEARISH -- SHORT -- CAUTION

Keybot the Quant flips to the short side at SPX 2263 this morning. The stock market continues in a sideways choppy pattern which wreaks havoc on algorithms. Retail stocks fail creating market weakness. Banks are also weak. Ditto utilities.

To determine if the short side is the correct path ahead, the bears need either UTIL under 651.79 and/or XLF under 22.76. Either one of these two parameters would confirm the bear path ahead and the stock market will drop a leg lower.

The bulls need to push RTH above 76.64 to create an upside rally and further frustrate the bears. Volatility remains low which keeps the stock market buoyant.

On the last trade, the Keybot computer program loses nearly -1% and the actual trading loses -1.6% now down -5.2% to begin the year. The actual results are going in the wrong direction so far this year but they should right the ship as time continues along. Keybot exits SSO and enters TWM.

For the SPX starting on Tuesday at 2265, the bulls need to touch the 2272 handle and the upside will accelerate. Keybot may whipsaw back to the long side if RTH moves above 76.64 and SPX above 2272. The market bears need to push below 2257 to accelerate the downside. A move through 2258-2271 is sideways action for Tuesday.

1/29/17; 7:00 PM EST =

1/27/17; 10:00 AM EST =

1/23/17; 2:03 PM EST = +68; signal line is +81

1/23/17; 1:10 PM EST = +84; signal line is +81 but algorithm remains short

1/23/17; 10:32 AM EST = +68; signal line is +81; go short 2263; (Benchmark SPX for 2017 = +1.1%)(Keybot algo this trade = -0.8%; Keybot algo for 2017 = -2.6%)(Actual results this trade = -1.6%; Actual results for 2017 = -5.2%)

1/23/17; 10:22 AM EST = +68; signal line is +81 but algorithm remains long

1/23/17; 9:46 AM EST = +84; signal line is +81

1/23/17; 9:36 AM EST = +68; signal line is +79 but algorithm remains long

1/22/17; 7:00 PM EST = +84; signal line is +79

1/20/17; 3:44 PM EST = +84; signal line is +79

1/20/17; 3:29 PM EST = +68; signal line is +79 but algorithm remains long

1/19/17; 9:36 AM EST = +84; signal line is +79

1/19/17; 9:00 AM EST = +100; signal line is +79

1/18/17; 3:46 PM EST = +100; signal line is +77

1/18/17; 3:14 PM EST = +84; signal line is +75

1/17/17; 3:38 PM EST = +100; signal line is +73

1/17/17; 3:08 PM EST = +84; signal line is +72

1/17/17; 2:33 PM EST = +100; signal line is +71

1/17/17; 2:22 PM EST = +84; signal line is +69

1/17/17; 12:49 PM EST = +100; signal line is +69

1/17/17; 12:40 PM EST = +84; signal line is +68

1/17/17; 10:07 AM EST = +100; signal line is +68

1/17/17; 9:36 AM EST = +84; signal line is +66

1/15/17; 7:00 PM EST = +68; signal line is +65

1/13/17; 10:00 AM EST = +68; signal line is +65

1/11/17; 2:31 PM EST = +68; signal line is +66

1/11/17; 12:07 PM EST = +52; signal line is +66 but algorithm remains long

1/9/17; 9:41 AM EST = +68; signal line is +67

1/8/17; 7:00 PM EST = +84; signal line is +68

1/6/17; 2:14 PM EST = +84; signal line is +68

1/6/17; 12:57 PM EST = +68; signal line is +69 but algorithm remains long

1/6/17; 12:33 PM EST = +84; signal line is +69; go long 2280; (Benchmark SPX for 2017 = +1.8%)(Keybot algo this trade = -1.8%; Keybot algo for 2017 = -1.8%)(Actual results this trade = -3.6%; Actual results for 2017 = -3.6%)

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

Keybot the Quant remains long moving into the new week of trading. The algo prints two numbers on Friday and was champing at the bit to go short but the internal programming rules would not fully latch so the algo remains long. The SPX remains buoyant due to low volatility. The algo number is only 5 points above the signal line.

Monday is a battle between utilities and retail stocks. Market bulls need UTIL above 663.23 (now at 658.37) to prove they have the beans to take stocks higher. Market bears need UTIL under 651.79 to create market weakness. Market bears need RTH under 76.63 (now at 76.67) which will create market weakness. Since the bull-bear line in the sand is only 4 pennies under the current price, retail stocks will tell the market story at the opening bell. If UTIL remains between 663.23 and 651.79, and RTH remains above 76.63, the stock market will float along sideways with a slight upward bias.

If RTH drops under 76.63 and the SPX drops under 2265, Keybot the Quant will likely flip short, hence the imminent turn remains in play.

For the SPX starting at 2271, the bulls need to touch 2277 and the upside will accelerate. The bears need to push under 2265 to accelerate the downside. A move through 2266-2276 is sideways action to begin the week. Keybot prints one pre-scheduled number this week on Friday morning. The bulls are in control but if retail stocks sink, so will the bulls. Watch RTH 76.63 which will likely dictate stock market direction for Monday.

1/29/17; 7:00 PM EST =

1/27/17; 10:00 AM EST =

1/22/17; 7:00 PM EST = +84; signal line is +79

1/20/17; 3:44 PM EST = +84; signal line is +79

1/20/17; 3:29 PM EST = +68; signal line is +79 but algorithm remains long

1/19/17; 9:36 AM EST = +84; signal line is +79

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

Keybot the Quant remains long as the cat and mouse game continues. Utilities collapse so stocks are weak. For all of next week, the UTIL 651.79 level is very important. The UTIL 663.23-ish level will also remain important for several days forward. If UTIL falls towards 652 and collapses, the broad stock market will likely be in trouble very quickly.

Retail stocks drop today. Market bears need RTH under 76.66 now at 76.87. If UTIL falls under 652, or RTH under 76.66, either one will do (RTH is more likely to fail), and the SPX drops under 2258, Keybot will likely flip short. Market bulls need to push UTIL above 663.23 and they can relax into the weekend as stocks float higher.

For the SPX starting at 2264, the bulls need to push above 2274 to accelerate the upside. The bears need to push under 2258 to accelerate the downside. A move through 2259-2273 is sideways action. If RTH drops under 76.66, the bears will likely growl strongly and take stocks lower. If RTH remains buoyant, so will the broad stock indexes.

1/22/17; 7:00 PM EST =

1/19/17; 9:36 AM EST = +84; signal line is +79

1/19/17; 9:00 AM EST = +100; signal line is +79

1/18/17; 3:46 PM EST = +100; signal line is +77

STOCK MARKET BULLISH -- LONG -- CAUTION

Keybot the Quant remains long. The algo prints two numbers today. The low volatility slaps the bears around each day. Slap, slap. Utilities keep dancing around the UTIL 663.25. The robot has told you this level is critical for several days. Price sits here overnight and the pivot from 663.25 is important after tomorrow's opening bell.

Bears need UTIL under 663.25 and GTX (Goldman Sachs Commodity Index) under 2335 (now at 2378) to create broad market selling. If both parameters turn bearish, and the SPX drops under 2263, Keybot will likely flip short.

For the SPX starting at 2272, the bulls need any smidge of green in the futures and the upside will accelerate quickly towards 2280. The bears need the SPX to drop under 2263 to accelerate the downside. A move through 2264-2271 is sideways action for Thursday. Keybot prints a pre-scheduled number before tomorrow's opening bell. The bulls remain in control and the algorithm remains at an epic and historic +100 maxed-out value. These are historic times.

1/22/17; 7:00 PM EST =

1/19/17; 9:00 AM EST =

1/18/17; 3:46 PM EST = +100; signal line is +77

1/18/17; 3:14 PM EST = +84; signal line is +75

1/17/17; 3:38 PM EST = +100; signal line is +73

STOCK MARKET BULLISH -- LONG -- CAUTION

Keyboth the Quant remains long as the algo prints 8 numbers to begin the week. The bulls remain in control. Keybot is pegged at the ceiling at an epic maxed-out +100 number. This is important since when the algo moves away from +100 it may be years before it returns.

The market bears need UTIL under 663.25 (this is a battle ground to begin the week) and/or XLF under 22.73 to create downside damage in stocks. If both parameters turn bearish, and the SPX trades below 2263, Keybot will likely flip short. The caution flag is in the title line and if one parameter turns bearish consider the imminent turn to be in play.

For Wednesday with the SPX starting at 2268, the bulls need to push above 2272 to accelerate the upside which will target 2280 in a flash. The bears need to push under 2263 to accelerate the downside which will be quickly in the 2250's. A move through 2264-2271 is sideways action for hump day.

1/19/17; 9:00 AM EST =

1/17/17; 3:38 PM EST = +100; signal line is +73

1/17/17; 3:08 PM EST = +84; signal line is +72

1/17/17; 2:33 PM EST = +100; signal line is +71

1/17/17; 2:22 PM EST = +84; signal line is +69

1/17/17; 12:49 PM EST = +100; signal line is +69

1/17/17; 12:40 PM EST = +84; signal line is +68

1/17/17; 10:07 AM EST = +100; signal line is +68

STOCK MARKET BULLISH -- LONG

Keybot the Quant remains long to begin the holiday-shortened trading week. Utilities jump higher as the Treasury yields drop lower. The algo prints two numbers to begin the week. Sound the seven trumpets! The algorithm tags the +100 level the highest number possible for the model! This is interesting since it occurs in a down tape. Stocks are well off their initial lows. The bulls are in control.

Market bears need UTIL under 663.25 or they got nothing. UTIL has come down to test this level four times over the last one-half hour and the bulls keep pumping utes higher. Weak financials will also help bears. XLF would need to drop below 22.75 (now at 23.15) to create broad stock market selling. Retail stocks rally strongly which prohibits the broad stock market from falling to any great extent.

1/22/17; 7:00 PM EST =

1/19/17; 9:00 AM EST =

1/17/17; 10:07 AM EST = +100; signal line is +68

1/17/17; 9:36 AM EST = +84; signal line is +66

1/15/17; 7:00 PM EST = +68; signal line is +65

STOCK MARKET BULLISH -- LONG -- CAUTION

Keybot the Quant remains long through the three-day holiday weekend. US markets are closed on Monday for the Dr Martin Luther King Jr Day.

Last week, Keybot idled along only printing four numbers including the Friday pre-scheduled number; the algo was unresponsive to the non-stop daily drama. Utilities sank last week but not enough to take UTIL under 643.46 a critical number for all of the new week ahead. This helps the bulls and will create buoyancy in the stock market. Bears need to push UTIL under 643.46 (now at 657). If UTIL moves higher above 662.50, the stock market will be rallying higher.

The bears need weaker utilities and retail stocks. Bears need RTH under 76.58 (now at 77.17) to create strong selling action in the stock market. The algorithm likely needs both UTIL to fail through 643.46 and RTH to fail under 76.58 to flip the algo short. Weakness in copper and commodities will also help the market bears.

For the SPX starting at 2275 on Tuesday, the bulls need to touch the 2279 handle and the upside will accelerate quickly well into the 2280's. The bears need to push below 2272 to accelerate the downside. A move through 2273-2278 is sideways action. Keybot prints one pre-scheduled number in the new week ahead on Thursday morning.

1/22/17; 7:00 PM EST =

1/19/17; 9:00 AM EST =

1/15/17; 7:00 PM EST = +68; signal line is +65

1/13/17; 10:00 AM EST = +68; signal line is +65

1/11/17; 2:31 PM EST = +68; signal line is +66

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

Keybot the Quant remains long and has not printed any numbers as yet in the Thursday session. The algo came close to flipping short on Wednesday afternoon but all of the internal parameters would not latch. The bulls remain in control with the algo number only 2 points above the signal line. Keep flipping that coin as the bulls and bears battle.

Bulls need UTIL above 662.50 to prove they have the beans to take stocks higher. Bears need RTH under 76.56 to prove they have the juice to take stocks lower. Bulls cheer for higher utilities while bears root for lower retail stocks. The UTIL failing at 662.50 the other day is very important and spells big trouble for stocks in the weeks and months ahead as long as it stays under this level.

If RTH drops under 76.56, and the SPX drops under 2254, Keybot will likely flip short. The beat goes on.

1/15/17; 7:00 PM EST =

1/13/17; 10:00 AM EST =

1/11/17; 2:31 PM EST = +68; signal line is +66

1/11/17; 12:07 PM EST = +52; signal line is +66 but algorithm remains long

1/9/17; 9:41 AM EST = +68; signal line is +67

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

Keybot the Quant remains long as the algo idled along in the Tuesday session without printing any numbers. The fight for Wednesday involves utes, retail stocks and commodities. The bulls need UTIL above 663 to take stocks higher. The bears need RTH under 76.56 and/or GTX under 2324 to confirm downside action for the stock market. If RTH or GTX turns bearish, either one would do, and the SPX falls under 2265, Keybot will likely flip short, hence, the imminent turn is listed in the title line. Bulls need higher utilities while bears need lower retail stocks and commodities.

For the SPX starting at 2269, the bulls need to push above 2279 to accelerate the upside. Bears need SPX under 2265 to accelerate the downside. A move through 2266-2278 is sideways action. If UTIL remains bearish, and RTH and GTX bullish, stocks will float along sideways with a slight upward bias.

1/15/17; 7:00 PM EST =

1/13/17; 10:00 AM EST =

1/9/17; 9:41 AM EST = +68; signal line is +67

STOCK MARKET BULLISH -- LONG -- CAUTION

Keybot the Quant remains long. The algo prints one number in the Monday trade. UTIL failed the 661.56 level so the bears painted a red tape. The bulls remain in control but the algo number is only 1 measly point above the signal line. In other words, flip a coin for the markets. Bulls and bears are fighting it out and the pricing action is erratic and unstable.

Bulls need UTIL above 661.56 to signal upside fun ahead and Dow 20K. The bears need either RTH under 76.48, JJC under 28.57 and/or GTX under 2325 (retail stocks, copper and commodity stocks, respectively). Copper is trading higher overnight. If RTH drops under 76.48, and the SPX is trading under 2269 and dropping, Keybot will likely flip to the short side.

Bulls win with UTIL above 661.56. Bears win with RTH under 76.48. If utes remain bearish and retail stocks remain bullish, the stock market will stagger along sideways with a slight upward bias.

For the SPX starting at 2269 on Tuesday, the bears need any smidge of red in the futures and the downside will accelerate several handles. S&P futures are printing a hair to the red side five hours before the opening bell. The bulls need to push above 2275 to regain their mojo. A move through 2270-2274 is sideways action for Tuesday but since it is such a tight range a winner and loser will be chosen. UTIL 661.56 and RTH 76.48 are key.

1/15/17; 7:00 PM EST =

1/13/17; 10:00 AM EST =

1/9/17; 9:41 AM EST = +68; signal line is +67

1/8/17; 7:00 PM EST = +84; signal line is +68

STOCK MARKET BULLISH -- LONG -- CAUTION

Keybot the Quant begins the first full week of trading in 2017 on the long side. Utilities and retail stocks are dictating the broad stock market direction currently. Bulls need UTIL above 661.56 and the Dow is on its way to 20K. If UTIL moves above 668.13, stocks will explode higher in a buying frenzy.

Bears need to push UTIL under 661.56 and stocks will begin selling off. Bears need RTH under 76.48, however, if they want to do serious downside damage. Keybot likely wants to see both UTIL under 661.56 and RTH 76.48 to flip back to the short side.

If UTIL continues to jog above and below the 661.56 level as the Monday session proceeds, that may hint that the bears are setting things up to flip the model short in the near future. If UTIL runs above 661.56 and is moving higher to 663, 665, and so forth, the bulls will be celebrating Dow 20K and the talk will increase about SPX 2300. It is extremely important for the market bears to keep UTIL under 661.56 and moving lower; the pivot up or down of this key parameter will influence stock market direction for weeks and months ahead.

For the SPX starting at 2277, the bulls need to push above 2282, five points higher, and a strong upside acceleration will occur towards 2290. The bears need to push below 2264, about 13 points lower, to accelerate the downside which will seek the 2250's quickly. A move through 2265-2281 is sideways action to begin the week. Keybot prints one pre-scheduled number this week on Friday morning, Friday the 13th. Watch UTIL 661.56 after Monday's opening bell.

1/15/17; 7:00 PM EST =

1/13/17; 10:00 AM EST =

1/8/17; 7:00 PM EST = +84; signal line is +68

1/6/17; 2:14 PM EST = +84; signal line is +68

STOCK MARKET BULLISH -- LONG -- CAUTION

Keybot the Quant flips to the long side at lunchtime in the Friday session at SPX 2280. Stock market direction is currently most greatly influenced by utilities and retail stocks. The algo has been calling out UTIL 661.56 the last few days and amazingly, the week ends with UTIL exactly  on this number to the penny. That is astonishing that the robot can call these key areas and their prices out before they happen. Obviously, the pivot of UTIL from 661.56 on Monday morning is hugely important. Not only from a short term perspective but for the intermediate term (weeks and months).

The areas most greatly impacting broad stock market direction and their values can be identified tomorrow after the Sunday print. Markets are very erratic and unstable. Call them a coin-flip. Keybot may whipsaw on Monday back to the bear side, however, it will likely take weakness in both the utilities and the retail stocks.

On the last trade, which is the first trade of the year, Keybot starts out on a negative note. The benchmark SPX is up +1.8% after the first week of trading in 2017. The Keybot the Quant algorithm program is down -1.8% and the actual trading loses -3.6% to begin the year. The last trade began in late 2016 so the loss is larger due to the pro-rating of the data to begin 2017. The bulls have the ball with the algo number 16 points above the signal line.

1/8/17; 7:00 PM EST =

1/6/17; 2:14 PM EST = +84; signal line is +68

1/6/17; 12:57 PM EST = +68; signal line is +69 but algorithm remains long

1/6/17; 12:33 PM EST = +84; signal line is +69; go long 2280; (Benchmark SPX for 2017 = +1.8%)(Keybot algo this trade = -1.8%; Keybot algo for 2017 = -1.8%)(Actual results this trade = -3.6%; Actual results for 2017 = -3.6%)

1/6/17; 10:58 AM EST = +68; signal line is +71

1/6/17; 9:00 AM EST = +52; signal line is +71

1/5/17; 9:36 AM EST = +52; signal line is +72

1/4/17; 11:42 AM EST = +68; signal line is +73

1/4/17; 11:18 AM EST = +84; signal line is +75 but algorithm remains short

1/4/17; 10:49 AM EST = +68; signal line is +75

1/4/17; 10:09 AM EST = +84; signal line is +75 but algorithm remains short

1/4/17; 9:36 AM EST = +68; signal line is +75

1/3/17; 9:36 AM EST = +52; signal line is +76

1/1/17; Begin 2017 Data Set = +38; signal line is +77; go short 2239; (Benchmark SPX for 2017 = 0%)(Keybot algo this trade = 0%; Keybot algo for 2017 = 0%)(Actual results this trade = 0%; Actual results for 2017 = 0%)