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

Keybot the Quant is short going into the Friday session but the algo should flip long at the opening bell so the imminent turn notation is added above. Keybot would have flipped long in the final minutes of the Thursday session but the slight drop in the SPX in the final minutes held back the change. A gap-up move would cause the algo to perhaps wait about 90 minutes this morning before completing the move to the long side. Utilities recovered yesterday with UTIL moving above both 480.94 and 481.39 creating the lift in equities. Interestingly, the UTIL 481.39 number is replaced with 488.48 at 4 PM EST today. UTIL begins the day at 484.98 comfortably above the 481.39 but by the closing bell today, UTIL must move above 488.48, otherwise, markets will weaken again next week. Keybot should flip long at the open today in a whipsaw move from the move to the short side on Wednesday, and if UTIL does not move above 488.48 today, next week may be set up for another whipsaw back to the short side. Obviously, the markets remain erratic and unstable.

A pre-scheduled number prints at 10 AM so the market action and the likely move to the long side can be updated as the morning progresses. Commodities are important and the bulls will receive upside fuel if GTX moves above 4759 (now at 4738). For the SPX today starting at 1636, the bulls need to move above 1639 and the upside will accelerate likely towards a test of the 1649-1650 resistance. The bears need to retrace yesterday's move, a formidable task, but not impossible, as shown by yesterdays action with the bulls retracing the prior day's bear move. The bears will likely instead focus on pushing UTIL back under 481.39 and especially keeping UTIL under 488.48 at the closing bell today.

6/16/13; 7:00 PM EST =

6/14/13; 10:00 AM EST =

6/13/13; 2:00 PM EST = +36; signal line is +27 but algorithm says stay short

6/13/13; 1:45 PM EST = +20; signal line is +27