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

Keybot the Quant is long but wants to flip to the short side. After the opening bell, if the SPX drops through 1682 and stays under for 7 to 10 minutes, Keybot will likely flip short. If there is a gap down at the opening bell of about 12 points or more, the algo will likely not flip short since a timer will probably kick in that will prevent the move for about 90 minutes time. If the SOX moves back above 471.15, all bets are off for the bears, the bulls will be back on easy street.  SOX begins at 469.97 causing market bearishness. Watch VIX 14.26; now at 13.39 causing market bullishness. Watch GTX 4785; now at 4835 causing market bullishness. If VIX or GTX flip to the bear camp, equities will weaken and head lower for an extended period of time.

For the SPX starting at 1685, the bulls need to move above 1691 and that will start the trek to 1700 again. The bears need to push under 1682 to accelerate the downside. A move through 1683-1690 is sideways action. Futures show a bounce on tap of 2 to 4 SPX points but the opening bell for the daily session remains about four hours away. The bears have it in their grasp. Today is an important day. Bears win if they keep SOX under 471.15 and push SPX under 1682. Bulls win if they move SOX back above 471.15. Keybot prints a pre-scheduled number at 10 AM so the action can be updated at that time.

7/31/13; 7:00 PM EST EOM =

7/30/13; 10:00 AM EST =

7/29/13; 11:06 AM EST = +34; signal line is +37 but algorithm says stay long