STOCK MARKET BEARISH -- SHORT -- CAUTION

Keybot the Quant remains short and markets remain a coin-flip. The retail sector faltered yesterday ushering in significant broad market weakness. Watch RTH 54.79. The algo is tracking seven areas with interest now but market direction can be boiled down to the behavior in retail, commodities and copper.  RTH is causing bearishness as mentioned but GTX 4888 and JJC 40.19 remains bullish. Commodities and copper allow the bulls to prevent an equity whoosh to the downside. If either GTX drops under 4888 and/or JJC under 40.19, there will be serious trouble ahead for markets. Copper is dropping -0.8% in early trading which would send the JJC under 40.19 at the opening bell. If bulls push RTH above 54.79 today, the upside market party will begin.

For the SPX starting at 1655, the bears have the easy road since price closed at the lows yesterday, and only need to drop under 1655 at the opening bell and the SPX will be on its way to test the strong 1652 and 1649 support. The bulls need to recover yesterday's losses and push above 1677, a difficult task. Instead, bulls will focus on pushing the retail, copper and commodity sectors higher which will stop the market downside. A move through 1655-1676 is sideways action. The imminent turn status will return in the title line above if the bulls push RTH over 54.79. If RTH moves above 54.79, and the SPX moves above 1677, and both stay above, it is conceivable that Keybot would flip to the long side. For now, the bears continue to drive the bus.

10/11/13; 10:00 AM EST =

10/8/13; 2:03 PM EST = +0; signal line is +16

10/8/13; 1:41 PM EST = +16; signal line is +18