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

Keybot the Quant remains short as the market drama continues. Bulls and bears fight each day but neither side wants to take firm control. The algo did not print any numbers today. Keybot continues to want to go long but the program numbers will not yet latch in to place properly to allow the move. The bulls had it on a silver platter today only needing SPX 1849 and higher but could not gain the strength. For Thursday, if the SPX moves above 1847, and remains above, Keybot will likely flip long. The SPX begins at 1845 and the bears need to push under 1841 to accelerate the downside. A move through 1442-1846 is sideways action. Since this is such a tight range, a winner will likely be selected tomorrow, and this market decision may send markets in that respective direction for days and weeks ahead.

Watch UTIL 494.55, now above causing bullishness. Watch VIX 13.65, now below causing bullishness (volatility moves inverse to the markets). Watch JJC 40.46, now at 40.57 only 11 cents away, but above nonetheless, causing bullishness. Market bears need to see weak copper overnight tonight to cause JJC to fail tomorrow. Watch GTX 4780, now at 4758, only 22 points away, but below nonetheless, causing bearishness. Market bulls need to see strong commodities overnight and they will ride the GTX higher to glory.

Boiling things down more simply, bulls win with GTX above 4780 (stronger commodities) or SPX above 1847. Bears win with JJC under 40.46 (weaker copper) and must prevent SPX 1847 by all means necessary. Expect the unexpected. Markets are likely at a key inflection point and should break hard one way or the other before the weekend. Copper direction will tell a lot overnight.

1/26/14; 7:00 PM EST =

1/21/14; 9:38 AM EST = +48; signal line is +42 but algorithm remains short