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

Keybot the Quant is long but a turn to the short side appears imminent. The UTIL failure at 488.48 creates market negativity and the UTIL 481.10 failure is serious business. The UTIL 481.10 failure occurs in the last few minutes of the session and is enough to trigger Keybot to the short side but the day ended before the algo could make the move to the bear side. Watch UTIL 481.10 at the opening bell since markets are in trouble if utilities stay under this level. If UTIL recovers above 481.10, the markets will stabilize. Keybot should flip short at the opening bell, however, a gap-down open of 11 or 12 points may delay the move to the short side up to 90 minutes.

For the SPX today starting at 1629, closing at the lows, the bears only need to see a smidge of red in the futures and that will lead to an acceleration lower for the SPX after the opening bell.  The bulls are simply trying to stop the bleeding and can immediately help markets stabilize if they attain UTIL 481.10. Keybot is now tracking XLF 19.30 (now causing market bullishness at 19.60) so pay attention to this level moving forward since it will lead to extended and sustainable broad market selling. Markets remain erratic and unstable. The imminent turn notation is added above. The opening minutes of trading for Thursday are important. The S&P futures are -11 at this writing five hours before the U.S. open drifting into the gap-down territory described above.

6/23/13; 7:00 PM EST =

6/19/13; 3:53 PM EST = +17; signal line is +30 but algorithm says stay long

6/19/13; 2:18 PM EST = +33; signal line is +30