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

Keybot the Quant is short as the erratic market action continues. The algo is champing at the bit to go long with the algo number 18 points above the signal line. If the SPX moves above 1932, Keybot will likely flip long, however, if there is a gap up move on Thursday a timer may be triggered that prevents the move for about 90 minutes.

Semiconductors are the top focus of Keybot currently so chips have the most impact on market direction. Watch SOX 610.00 now at 613.34 which is bullish and causing lift in the stock market. Bears need to push SOX under 610 to immediately to prove they can take the stock market lower.

For the SPX starting at 1930, exactly where the algo flipped short, the bulls need to push above 1932 and bingo, stocks will accelerate higher. Bears need to push under 1891, a formidable task, so instead will focus on pushing SOX under 610. A move through 1892-1931 is sideways action for Thursday. Watch the chips.

2/28/16; 7:00 PM EST =

2/26/16; 10:00 AM EST =

2/24/16; 2:35 PM EST = +21; signal line is +3 but algorithm remains short

2/24/16; 2:15 PM EST = +5; signal line is +2 but algorithm remains short

2/24/16; 9:36 AM EST = -11; signal line is +1

2/23/16; 12:01 PM EST = +5; signal line is +1 but algorithm remains short