STOCK MARKET BEARISH -- SHORT -- CAUTION

Keybot the Quant remains short. The day began with utilities and commodities helping the bears but once the dollar weakened the CRB moved higher and crossed up over 312 helping the bulls.  AAPL was up 18 bucks and it carried the markets higher as well. The two most important things to watch on Tuesday are CRB 312 and UTIL 463 (462.94 if you want ot be exact). CRB is now bullish and UTIL bearish. The broad markets will move up if UTIL moves above 463 and the markets will move lower if CRB drops back under 312 and heads lower.

Also watch JJC 49, now at 50.31 in the bulls camp, over a point above the level that will cause market selling. Keybot is now scanning semiconductors so look for them to gain prominence in the coming days. The SOX touched a 431 handle and closed at 438.44.  If SOX loses the 426.50 level, the broad markets will experience strong selling. Thus, the socks were only about five bucks from causing market mayhem before Apple chose to run higher and took the entire tech sector and broad markets with it.

For the SPX, starting at 1419.04, the bulls need to poke thru the 1422 resistance again, if so, this time the broad markets will accelerate higher. Thus, the bulls only need to see a plus three in the overnight futures and the party will be on its way.  The bears need to push under 1405 to ignite strong negativity. This is a formidable task, fourteen points lower, but not impossible. A move thru 1406-1421 is sideways action.

Markets remain unstable; Keybot remains short. In a nutshell, CRB 312, UTIL 463, SOX 426.50 and JJC 49 will dictate broad market direction. Keybot will likely return to the long side if UTIL 463 is taken out. Bears will be cruising if the CRB drops back under 312.

4/8/12; 7:00 PM EST =

4/6/12; 9:00 AM EST =

4/2/12; 2:13 PM EST = +60; signal line is +64

4/2/12; 9:37 AM EST = +46; signal line is +65

4/1/12; 7:00 PM EST EOM EOQ1 = +62; signal line is +65