STOCK MARKET BEARISH -- SHORT -- CAUTION

Keybot the Quant remains bearish moving into the Tuesday session. The bulls push hard to the upside but could not move copper higher or volatility lower, so they ran out of gas. Watch JJC 41.58, VIX 13.15 and GTX 4785. All three are in the bear camp. The bulls need to attain at least one of these three levels to develop upside oomph and place Keybot in a position to want to go long.  The bears will try to maintain this negativity moving forward and at the same time drive the utilities lower. If UTIL loses the 481 level, the broad indexes will weaken substantially. The bulls can hang on if they keep UTIL above 481 (now at 492).

For the SPX starting at 1660, the bulls need to revisit yesterday's high above 1674 to develop upside mojo. The bears need to push under 1653, about seven points lower, to accelerate the downside. A move through 1654-1673 is sideways action. The S&P futures are down 6 at this writing about five hours before the opening bell. Markets remain erratic and very unstable.

5/31/13; 10:00 AM EST =

5/28/13; 10:00 AM EST = +33; signal line is +42

5/26/13; 7:00 PM EST = +32; signal line is +42