STOCK MARKET BEARISH -- SHORT -- CAUTION

Keybot the Quant is short moving into the Tuesday session. The bulls continue to float the SPX to new highs. The algo is tracking UTIL 506.22 (now at 504.86 causing market negativity) and JJC 40.19 (now at 40.05 causing market negativity). Thus, the bulls need one of both of these parameters to move into their camp and create equity market upside. The algo is also tracking VIX 14.60 (now at 13.31 causing market bullishness). The bears need to push VIX above 14.60 which clears the path for substantive market downside. So the bulls need higher utilities and copper while the bears need higher volatility. The SPX and VIX were both up yesterday so one of them is wrong. Copper is higher in early trading. 

For the SPX starting at 1762, the bulls need to touch the 1765 handle and it is upside party-time once again with price moving to the 1770's. The bears need to push under 1758 to accelerate the downside. A move through 1759-1764 is sideways action. The bears are in firm control of the markets, with the algo number 25 points below the signal line, despite the SPX printing new all-time highs yesterday. If both UTIL and JJC turn bullish as described above, and the SPX moves above 1765, and all three stay above their respective levels, Keybot will likely flip to the long side. Otherwise, the robot likely remains short.

10/31/13; 7:00 PM EST EOM =

10/29/13; 10:00 AM EST =

10/28/13; 10:31 AM EST = +32; signal line is +57

10/27/13; 7:00 PM EST = +48; signal line is +58