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

Keybot the Quant remains bearish as the odd market behavior continues this week. The bulls launch the utilities sector yesterday with UTIL jumping to 508.28, well above the 504.41 bull-bear line, creating the lift in equities yesterday. The key bull-bear line in the sand for next week for utilities is 508.47 so the bulls are already trying to position the utilities to maintain an elevated stock market moving forward. UTIL 508.47 is very important moving into the closing bell tomorrow (Friday) since it will provide a heads-up for Monday.

Watch UTIL 504.41 (now causing bullishness), JJC 40.18 (now causing bearishness) and XLF 20.40 (now causing bullishness). Copper collapsed -2% yesterday with JJC dropping to 39.72. So the bulls wave the utility banner and the bears wave the copper banner and markets stagger sideways still unwilling to make a directional decision. Bears win with UTIL 504.41 and/or XLF 20.40. Bulls win with JJC 40.18. If the 3 parameters remain status quo, markets continue to drift sideways.

For the SPX starting at 1770, the bulls need to touch the 1774 handle and new all-time highs will be printing in quick order with the SPX on the way to the 1780 handle. The bears need to push under 1764.50 to accelerate the downside. A move through 1765-1773 is sideways action. S&P futures are -3 about 5 hours before the opening bell. Markets are a coin-flip as evidenced by the algo number and signal line flat in-line with each other. Utilities, copper and financials will identify the winner. 

11/8/13; 9:00 AM EST =

11/6/13; 9:54 AM EST = +46; signal line is +47

11/5/13; 2:02 PM EST = +30; signal line is +47