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

Keybot the Quant remains short as the markets experience a strong sell off in Thursday trading. Note that Keybot was actually on the verge of flipping long in the afternoon (the algo would not allow the trend change since internal programming rules would not line up properly). The SPX is now back down to where the algo initiated the short position at 1746-1747 two weeks ago and the XLF (financials) drop to 20.39 directly on top of the 20.39-20.40 line in the sand identified by Keybot. It is amazing how the algo identifies these numbers before they occur. Lots of drama remains in the markets and the imminent turn status is in place since equities can continue to go either way. Equities remain a coin-toss.

Watch UTIL 504.41 today but at the closing bell 508.47 becomes the new line in the sand for all of next week. Utilities are causing bearishness under 504.41 and will cause bearishness next week under 508.47. Pay attention to the closing print for UTIL today. XLF is directly on top of the 20.39 bull-bear line in the sand and whichever way it moves, the broad indexes will follow. Watch VIX 14.32, now at 13.91 causing bullishness. Watch SOX 492.85, now at 495.20 causing bullishness. Watch JJC 40.18, now at 39.69 causing bearishness. Ay change to any of these 5 parameters will cause markets to move in that respective direction. XLF 20.39 and UTIL 504.41 are the two top tier parameters as identified by Keybot. If UTIL moves above 504.41, and the SPX moves above 1775, and both remain above, a formidable task but not impossible, Keybot will likely flip long.

For the SPX at 1747, the bulls need to move above 1774.50 to regain the upside mojo. The bears need to push under 1746 to accelerate the downside. A move through 1747-1774 is sideways action. The algo prints a pre-scheduled number today before the opening bell. S&P futures are +5 about 4-1/2 hours before the opening bell.

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

11/7/13; 3:32 PM EST = +30; signal line is +44

11/7/13; 2:40 PM EST = +46; signal line is +44 but algorithm remains short

11/7/13; 1:51 PM EST = +30; signal line is +45

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