STOCK MARKET BULLISH -- LONG -- CAUTION -- TURN MAY BE IMINENT

Keybot the Quant is long moving into the Tuesday session. The algo idled along yesterday without printing any numbers. At this juncture about four hours ahead of the U.S. opening bell, the S&P futures are down -12. Now -13. Now -14. Watch to see if UTIL loses 481.39 and 481.03. Losing UTIL 481.39 will create market negativity and position Keybot to flip back to the short side. Losing 481.03 will create far greater market negativity and selling with the SPX heading towards 1600. Independent of the drop in equities that appears on tap this morning, UTIL is the key. If 481.39 fails, the market downside is for real. If UTIL stays above 481.39, the markets will stabilize in favor of the bulls. Keybot uses a 48-hour window to determine if a whipsaw occurs, or not. Thus, if Keybot flips short before 10 AM, the algo will revert to using single ETF's again to lower risk.

For the SPX starting at 1643, the bulls need to touch the 1649 handle to accelerate the upside. The bears need to push under 1639 to accelerate the downside, and considering the deteriorating futures, price should immediately slice down through 1639 at the open. Initial support below is 1634, 1626-1627 and 1623.

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

6/9/13; 7:00 PM EST = +36; signal line is +30

6/7/13; 10:02 AM EST = +36; signal line is +30; go long 1633; (Benchmark SPX for 2013 = +14.5%)(Keybot this trade = +1.7%; Keybot for 2013 = +8.5%)(Actual this trade = +3.0%; Actual for 2013 = +8.5%)