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

Keybot the Quant remains short. Semiconductors and commodities are dictating market direction. Watch SOX 473.36 and GTX 4795.  SOX begins the Friday session at 474.31, causing market bullishness, but only 95 cents from failure which would usher in market selling.  GTX is 4779, causing market bearishness, but only 16 bucks from the bull camp which would usher in a strong push higher for equities. Hence, a standoff, and one or the other is going to flinch sending markets in that direction. Note that the algo number and signal line are dead even at 51. The program keeps Keybot on the short side but it is in essence a coin flip. The Friday session is very important. Bears want to see weakness in tech.  Bulls want to see a weaker dollar and stronger commodities.

For the SPX starting at 1697, the bulls need to push up through 1700 and it is smooth sailing higher back to the 1707 and 1710 levels.  The bears need to push under 1688 to accelerate the downside.  A move through 1689-1699 is sideways action. Markets are at an inflection point right now and SOX 473.36 or GTX 4795 points the path forward. Markets remain erratic and unstable. The imminent turn notation is added in the title line since markets are a coin flip right now. At this writing about 3-1/2 hours before the opening bell, the S&P futures point to a drop of about 6 points in the SPX at the bell.

8/11/13; 7:00 PM EST =

8/8/13; 11:40 AM EST = +51; signal line is +51 but algorithm says stay short

8/8/13; 10:10 AM EST = +35; signal line is +51