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

Keybot the Quant remains short. The algo idled along yesterday without printing any numbers. For Tuesday, the semiconductors, volatility and financials will dictate market direction. The market bulls need to push the SOX above 424.00 and/or VIX below 14.15 to win back control of the markets. If the SOX moves above 424.00, it is likely that Keybot will flip long, hence, the imminent turn signal is displayed. If the bears keep the SOX below 424.00 and the VIX above 14.15, the markets will continue to sell off.  The bears will receive additional downside fuel if the XLF (financials) falls under 17.97.

For the SPX starting at 1562.50, the bulls need to touch the 1566 handle and it will be off to the races higher, with the algo likely moving towards flipping to the long side.  The bears need to push under 1548 and the downside will accelerate. A move through 1549-1565 is sideways action today. Markets remain erratic and unstable. SOX 424.00 is very important especially in early trading. The S&P futures are currently pointing to a drop of about four points in the SPX when it opens five hours from now.

4/28/13; 7:00 PM EST =

4/26/13; 10:00 AM EST =

4/21/13; 7:00 PM EST = +16; signal line is +32

4/19/13; 10:07 AM EST = +16; signal line is +32