STOCK MARKET BEARISH -- SHORT -- CAUTION

Keybot the Quant remains short. Copper is tumbling for a second day with JJC at 39.56 well under the 39.97 bull-bear line now causing market negativity. Bears are pushing the SPX lower for a potential test of the 1631 support where markets would either bounce, or die.

9/1/13; 7:00 PM EST EOM =

8/30/13; 10:00 AM EST = -31; signal line is -5

8/29/13; 3:59 PM EST = -30; signal line is -3

STOCK MARKET BEARISH -- SHORT -- CAUTION

Keybot the Quant remains bearish moving into the Friday session. It took the whole Thursday session for copper to fail but in the last minute of trading, it did. Watch JJC 39.97 as the bull-bear line in the sand. JJC begins the day at 39.96 causing market bearishness, albeit by only one single penny. If JJC continues lower, so will equities. If JJC rebounds from here, so will equities. Copper is weak in early trading.

For the SPX starting at 1638, the bulls need to touch 1646.50 to launch an upside acceleration. The bears need to push under 1631 to create a downside acceleration. A move through 1632-1645 is sideways action. Keybot prints a pre-scheduled number at 10 AM so the action can be updated at that time. Copper is the key today.

9/1/13; 7:00 PM EST EOM =

8/30/13; 10:00 AM EST =

8/29/13; 3:59 PM EST = -30; signal line is -3

8/27/13; 10:00 AM EST = -14; signal line is -2

STOCK MARKET BEARISH -- SHORT -- CAUTION

Keybot the Quant remains bearish moving into the Thursday session. The markets are very indecisive right now. The SPX starts at 1635 with the bulls needing to push above 1641 to create an upside acceleration and bears needing to drop under 1627.50 for a downside acceleration. A move through 1628-1640 is sideways action today. Bulls need to push UTIL above 483.32 to create upside market strength. Bears need to push JJC under 40.07 to create a new down leg for markets. The market action should be perceived as sideways if UTIL stays under 483.32 and JJC stays above 40.07. If UTIL moves above 483.32, and the SPX moves above 1641, and both stay above, Keybot will likely flip to the long side. If UTIL moves above 483.32, consider a turn to the long side to be imminent.

8/30/13; 10:00 AM EST =

8/27/13; 10:00 AM EST = -14; signal line is -2

STOCK MARKET BEARISH -- SHORT -- CAUTION

Keybot the Quant remains short. The Tuesday session performs serious technical damage to markets. The retail and financial sectors are collapsing. Volatility spikes higher with the VIX well over 16. The algo idled along without printing any numbers after the pre-scheduled number. Keybot is tracking utilities and copper as the key directional influences on equities. Watch UTIL 483.32 (now causing market negativity at 479.35) and JJC 40.10 (now at 40.97 causing market bullishness). Thus, the bears need JJC under 40.10, and copper is weak in early trading today, to force equities another leg lower, while the bulls need to push UTIL above 483.32 to stop the downward slide in equities.

For the SPX starting at 1630, the bears only need one point lower, to drop under 1629, and the downside will accelerate. The bulls need to touch the 1653 handle to regain their mojo, a formidable task that appears unlikely, although you never know. A day may need to pass to settle the markets and the bulls will instead focus on trying to boost the utilities sector and keep copper elevated.  A move through SPX 1630-1652 is sideways action for Wednesday.

8/30/13; 10:00 AM EST =

8/27/13; 10:00 AM EST = -14; signal line is -2

STOCK MARKET BEARISH -- SHORT -- CAUTION

Keybot the Quant remains short. The pre-scheduled number results in a further tightening of the algo number and signal line spread now only 12 points difference. Most sectors are weak. Volatility is higher with VIX over 16 which should create wilder and wilder point swings in the markets. Copper and commodities are the bulls best friends currently.The SPX collapsed at the opening bell printing a LOD at 1640.36. The bears are driving the bus but the fight continues. For now, the imminent turn status is removed but things can change quickly in these fast-moving markets.

8/30/13; 10:00 AM EST =

8/27/13; 10:00 AM EST = -14; signal line is -2

8/26/13; 3:15 PM EST = -15; signal line is -1

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

Keybot the Quant remains short through a low volume erratic day of trading. The bulls did their best to push higher today but fell on their sword into the close. VIX exploded higher sending markets lower. Financials and retail collapsed late-day.  Watch VIX 14.33, UTIL 483.32, XLF 20.11 and RTH 53.91. All 4 are causing bearishness so the bulls need to turn at least one parameter bullish to send equities higher, otherwise, they got nothing. For the SPX starting at 1657, the bulls need to move above 1669.50 and an upside acceleration will occur. Bears need to push only one point lower, under 1656, to create a downside acceleration so negativity in the overnight futures will pave the way for the bears. A move through 1657-1668 is sideways action for Tuesday. Keybot prints a pre-scheduled number at 10 AM so the action can be updated at that time.

8/27/13; 10:00 AM EST =

8/26/13; 3:15 PM EST = -15; signal line is -1

8/26/13; 12:07 PM EST = -1; signal line is +0

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

Keybot the Quant remains short as the algo already prints six numbers to begin the week. The bulls could not receive juice from utilities so the financials and retail sectors were pumped instead. Watch the ongoing drama with RTH 53.92 and XLF 20.11. Both ran higher into the bull camp but then reversed liking the bear camp better. The bears continue driving the bus but both sides are fighting for control. Bulls need XLF above 20.11 and higher and the SPX 1669 and higher to create the conditions for the algo to flip long. Bears simply need to keep UTIL, RTH and XLF in the bear camp while pushing volatility higher. Markets remain a coin flip right now. XLF 20.11 tells a lot. Current print for XLF at this writing is 20.09 helping the bear case.

8/27/13; 10:00 AM EST =

8/26/13; 12:07 PM EST = -1; signal line is +0

8/26/13; 11:23 AM EST = +15; signal line is +0 but algorithm says stay short

8/26/13; 11:21 AM EST = +31; signal line is +0 but algorithm says stay short

8/26/13; 11:01 AM EST = +15; signal line is -0 but algorithm says stay short

8/26/13; 9:50 AM EST = -1; signal line is -1 but algorithm says stay short

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

Keybot the Quant remains short but a turn may be imminent. The algo number and signal line are at the same -1 number. The algo says stay short, for now.  VIX is under the 14.35 bull-bear line causing the markets to lift in early trading so bears need higher volatility. Bulls need either UTIL 483.35, XLF 20.12 and/or RTH 53.94 to confirm the upside rally and potentially trigger Keybot to move to the long side. The HOD is 1667.78 so the algo will also need price to move above 1667.78, and stay above this level, for a flip to the bull side.  High drama to begin the new week of trading.

8/27/13; 10:00 AM EST =

8/26/13; 9:50 AM EST = -1; signal line is -1 but algorithm says stay short

8/26/13; 9:31 AM EST = -15; signal line is -1

8/25/13; 7:00 PM EST = -1; signal line is +0

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

Keybot the Quant is short moving into the new trading week but the algo number is now only one tiny point away from flipping the algo to the long side.  Utilities are key, thus, Treasury yields are important. Rising yields sends utes lower and visa versa. UTIL is 482.94 and the bulls only need 20 pennies higher, to push UTIL up over 483.14, and stay above, to verify the recovery rally.  If UTIL moves above 483.14, and the SPX moves above 1665, and both remain above, Keybot will likely flip long. Also watch VIX 14.24 (now creating bullishness), XLF 20.12 (now creating bearishness) and RTH 53.96 (now creating bearishness). The movement of UTIL, VIX, XLF and RTH dictate market direction this week.

For the SPX starting at 1664, the bulls need to touch the 1665 handle and an upside acceleration will occur which likely locks in a sustainable upside rally.  The bears need to push under 1655 to accelerate the downside. A move through 1656-1664 is sideways action. Bulls need to push utilities and financials higher while keeping volatility low. Bears need to keep utilities and financials lower while pushing volatility higher. Watch the Sunday evening futures since a couple positive points will likely signal that the recovery rally has sustainability. 

9/1/13; 7:00 PM EST EOM =

8/30/13; 10:00 AM EST =

8/27/13; 10:00 AM EST =

8/25/13; 7:00 PM EST = -1; signal line is +0

8/23/13; 3:20 PM EST = -1; signal line is +1

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

Keybot the Quant remains bearish but a sleepy Friday exploded into an upside bull frenzy in the last hour of trading on a thin-volume day. Volatility collapsed into the closing bell with the VIX closing under 14 and now causing market bullishness. Utilities ran higher with UTIL moving above the important 483.14 level, which would have likely caused Keybot to flip long, but it did not hold.  UTIL dropped slightly to close at 482.94, only 20 cents from providing the bulls with an extended upside rally. Volatility, utilities, financials and retail are the four parameters dictating market direction currently. The levels of interest for next week can be identified once the Sunday pre-scheduled number prints tomorrow. The algo number is now only 2 points from the signal line. The imminent turn notation is added in the title line since if the bulls push utilities higher on Monday morning, and the SPX gains a couple points, Keybot will likely flip long.

8/25/13; 7:00 PM EST =

8/23/13; 3:20 PM EST = -1; signal line is +1

8/23/13; 11:21 AM EST = -15; signal line is +2

STOCK MARKET BEARISH -- SHORT -- CAUTION

Keybot the Quant remains bearish through the sideways action today. The bulls pushed UTIL above 483.16, but alas, utes fell through again. XLF is remaining under 20.12, now printing under 20. VIX is 14.39 remaining above the 14.23 bull-bear line in the sand but 16 pennies in volatility is nothing. If VIX drops under 14.23, the markets will march higher into the closing bell. For now, the bears continue to drive the bus. The caution flag definitely remains and the signal is actually very close to an imminent turn status. Bears win if they keep VIX above 14.23.  Bulls win below VIX 14.23.

8/25/13; 7:00 PM EST =

8/23/13; 11:21 AM EST = -15; signal line is +2

8/23/13; 10:55 AM EST = +1; signal line is +4

8/20/13; 2:34 PM EST = -15; signal line is +6

STOCK MARKET BEARISH -- SHORT -- CAUTION

Keybot the Quant remains short and idles along another day without printing any numbers, despite the market turmoil and Nasdaq shutdown. Oddly, the SPX took out the prior day's high but none of the negative market parameters turned bullish. Watch UTIL 483.16, XLF 20.12 and VIX 14.23. All three are bearish creating market negativity. If 2 of the 3 turn bullish, and the SPX prints above 1659.50 and stays above, Keybot will likely flip long. Watch commodities, GTX 4825, since this level will create further market bearishness.

For the SPX starting at 1657, the bulls need to push up through 1659.50 and the upside will accelerate. The bears need to push down through 1645 to accelerate the downside.  A move through 1646-1658 is sideways action for Friday.  Watch XLF 20.12. The caution flag remains out. If 1 of the 3 parameters mentioned in the first paragraph turn bullish, consider that to signal that a turn to the bull side is imminent.

8/25/13; 7:00 PM EST =

8/20/13; 2:34 PM EST = -15; signal line is +6

STOCK MARKET BEARISH -- SHORT -- CAUTION

Keybot the Quant remains bearish and motors along today without printing any numbers. Utilities, retail and financials all remain weak, and volatility is elevated, so the bears cruise. Watch UTIL 483.16, XLF 20.12 and GTX 4827. Utes and financials are causing market bearishness while commodities are causing bullishness. Scroll back to prior posts and note the discussions on the UTIL 50-week MA trap-door. The UTIL trap-door opened on Friday creating almost 20 points of downside into Monday but the utilities recovered. Then the trap-door opened again on Tuesday and this results in the drop from 1658 to 1642, 16 handles, so far. Markets conditions should deteriorate moving forward if UTIL stays under 483.16. The bears need to push GTX under 4827 to receive more downside fuel. The bulls need to move either UTIL above 483.16, or XLF above 20.12, and a recovery rally will be underway.

For the SPX, starting at 1643, the bulls need to touch the 1657 handle and the upside will accelerate with a recovery rally likely. The bears need to push under 1640 and the downside will accelerate. A move through 1641-1656 is sideways action.

8/25/13; 7:00 PM EST =

8/20/13; 2:34 PM EST = -15; signal line is +6

8/20/13; 2:22 PM EST = +1; signal line is +9

STOCK MARKET BEARISH -- SHORT -- CAUTION

Keybot the Quant remains short. The algo prints numbers like crazy for the Tuesday session.  Funny how some days Keybot meanders along uninterested without printing any numbers and then other days are a frenzy of activity. The bulls send the signal line down to +6 now only 21 points from the algo number. Watch UTIL 483.16, RTH 53.97, XLF 20.12 and VIX 14.21. All four parameters remain bearish and will continue to create market negativity unless 1 of the 4 move across the levels shown to create market bullishness. If 2 of the 4 turn bullish, and the SPX moves above 1659, Keybot would likely flip to the long side.

For the SPX for Wednesday, starting at 1652, the bulls need to touch 1659 and the upside will accelerate well into the 1660's. The bears must push under 1646 to accelerate the downside into the 1630's. A move through 1647-1658 is sideways action. The caution flag is out. If 1 of the 4 parameters highlighted above turn bullish, consider the algo to be near an imminent turn back to the long side.  

8/25/13; 7:00 PM EST =

8/20/13; 2:34 PM EST = -15; signal line is +6

8/20/13; 2:22 PM EST = +1; signal line is +9

8/20/13; 2:14 PM EST = -15; signal line is +11

8/20/13; 1:16 PM EST = +1; signal line is +14

8/20/13; 12:34 PM EST = -15; signal line is +16

8/20/13; 12:17 PM EST = +1; signal line is +18

8/20/13; 12:16 PM EST = -15; signal line is +20

8/20/13; 11:40 AM EST = +1; signal line is +22

8/20/13; 11:30 AM EST = -15; signal line is +25

8/20/13; 10:27 AM EST = +1; signal line is +27

STOCK MARKET BEARISH -- SHORT

Keybot the Quant remains short. The bulls fight back today sending UTIL above 484 closing the trap-door at 483. This allows equities to float higher. RTH, XLF and VIX all remain in the bear camp but more drama is brewing. RTH is at 53.91 and has been teasing the 53.97 bull-bear line in the sand level for the last one-half hour. Very simply, equities continue higher if RTH moves above 53.97, 54, and higher. Markets will drift sideways if RTH stays under 53.97 and markets will sell off again if the UTIL trap-door reopens at 483.

8/25/13; 7:00 PM EST =

8/20/13; 10:27 AM EST = +1; signal line is +27

8/18/13; 7:00 PM EST = -15; signal line is +29

STOCK MARKET BEARISH -- SHORT

Keybot the Quant remains short and idles along today without printing any numbers. The bears are cruising with weak financials, utilities and retail, as well as higher volatility, the VIX now above 15. For Tuesday, with the SPX starting at 1646, the bulls need to touch the 1659 handle, 13 points higher, to regain upside mojo. The bears need to push under 1646, at most one negative point, and a downside acceleration into the 1630's is on tap. Thus, watch for any hint of negativity in the S&P futures that will provide the bear go signal. A move through 1647-1658 is sideways action.

8/25/13; 7:00 PM EST =

8/18/13; 7:00 PM EST = -15; signal line is +29

8/16/13; 12:40 PM EST = -15; signal line is +32

STOCK MARKET BEARISH -- SHORT

Keybot the Quant is bearish as the new week of trading begins. Utility weakness signals serious trouble for markets so watch UTIL 483.00 closely. The algo is also tracking XLF 20.13, VIX 14.21 and RTH 54.00. All four of these parameters are causing market negativity. If any one of the four turn bullish, a recovery rally is on tap, however, the bulls would likely need 3 of the 4 to turn bullish to signal the all-clear for market upside again.

For the SPX starting at 1656, the bulls need to touch the 1664 handle to create an upside acceleration and begin a recovery rally. The bears only need two points lower, to push under 1653, to accelerate the downside. A move through 1654-1663 is sideways action for Monday. Keybot does not print any pre-scheduled numbers this week. The bears are cruising.

8/25/13; 7:00 PM EST =

8/18/13; 7:00 PM EST = -15; signal line is +29

8/16/13; 12:40 PM EST = -15; signal line is +32

STOCK MARKET BEARISH -- SHORT

Keybot the Quant remains short through the weekend. The algo number is 47 points under the signal line, firmly bearish. The algo was very active in the Friday session as financials, utilities and volatility pushed the markets to and fro. UTIL lost the 483 trap-door level but the SPX only dropped about 10 handles off its intraday high. With UTIL under the 50-week MA (483), significant and extended market weakness would be expected moving forward. The important areas and levels of interest for next week can be identified once the Sunday pre-scheduled number prints tomorrow. The -15 print for the algo is the lowest number since 6/24/13 and 6/25/13 when -27 and -45 were printing which identified the June market bottom.

8/18/13; 7:00 PM EST =

8/16/13; 12:40 PM EST = -15; signal line is +32

8/16/13; 12:23 PM EST = -1; signal line is +34

8/16/13; 11:56 AM EST = +15; signal line is +35

8/16/13; 11:40 AM EST = +31; signal line is +36

8/16/13; 11:37 AM EST = +15; signal line is +38

8/16/13; 11:08 AM EST = -1; signal line is +39

8/16/13; 10:47 AM EST = +15; signal line is +41

8/16/13; 10:15 AM EST = -1; signal line is +42

8/16/13; 10:00 AM EST = +15; signal line is +44

STOCK MARKET BEARISH -- SHORT

Keybot the Quant remains short. VIX recovers for the bulls dropping under 14.21. UTIL taps on the trap-door at 483, and bounces. Watch this closely since market mayhem would occur if UTIL loses 483. XLF is attacking the 20.14 bull-bear line in the sand so watch this closely. The bulls will be in a recovery move if XLF moves above 20.14. Bears will push equities lower if VIX moves back above 14.21.

8/18/13; 7:00 PM EST =

8/16/13; 10:00 AM EST = +15; signal line is +44

8/16/13; 9:49 AM EST = +17; signal line is +45

8/16/13; 9:00 AM EST = +3; signal line is +46

8/15/13; 1:05 PM EST = +3; signal line is +48

STOCK MARKET BEARISH -- SHORT

Keybot the Quant is short moving into the Friday session. Today was a circus for equities with technical damage occurring. Semiconductors, retail, financials and volatility sectors all leaped into the bear camp creating market negativity. For Friday, the bears need to push the SPX under 1659, and hold it under, and the downside will accelerate. The bulls need to stop the bleeding and this can be accomplished if any of the following three levels can be regained; RTH 54.08, XLF 20.13, VIX 14.21. Bulls are in serious trouble if they cannot regain at least one of the three parameters. Keybot prints two pre-scheduled numbers tomorrow so the action can be updated in the morning. UTIL has a 486 handle and if 483 fails, a trap-door would open for equities and take markets sharply and quickly lower.

8/18/13; 7:00 PM EST =

8/16/13; 10:00 AM EST =

8/16/13; 9:00 AM EST =

8/15/13; 1:05 PM EST = +3; signal line is +48

8/15/13; 11:29 AM EST = +17; signal line is +50

STOCK MARKET BEARISH -- SHORT

Keybot the Quant is bearish as the VIX oscillates above and below the important 14.21 bull-bear line in the sand. XLF is 20.05 continuing to create market negativity as long as it stays under 20.13. The bears are cruising. SPX prints a new LOD at 1658.59.

8/16/13; 9:00 AM EST =

8/15/13; 1:05 PM EST = +3; signal line is +48

8/15/13; 11:29 AM EST = +17; signal line is +50

STOCK MARKET BEARISH -- SHORT

Keybot the Quant is bearish today but the bulls are fighting back sending the VIX back below 14.21.  RTH remains under 54.08 (causing bearishness) and XLF remains under 20.13 (causing bearishness), albeit by only 3 pennies. UTIL is 488 only 5 points above where a trap-door opens for equities at UTIL 483. The SPX is currently printing 1666.

8/16/13; 9:00 AM EST =

8/15/13; 11:29 AM EST = +17; signal line is +50

8/15/13; 9:50 AM EST = +3; signal line is +51

STOCK MARKET BEARISH -- SHORT

Keybot the Quant flips bearish shortly after the opening bell today. The algo wanted to go short yesterday but was held back by one single SPX point, so the gap down move takes -1.5% from the algo program and -3% from the latest trade.  The algo exits SSO and enters SH. Keybot whipsaws short within 48 hours after the bullish move. Since a whipsaw occurred, Keybot drops down into the single ETF's again to lessen risk. Semiconductors collapse at the opening bell and financials (XLF 20.13), retail (RTH 54.08) and volatility (VIX 14.21) all failed shortly after the session began. Watch these three parameters closely for any sign of a bullish recovery. The VIX is 14.20, slipping one penny to the bull side as this is typed. Bears are driving the bus again. As always, stay alert for a whipsaw back to the long side either today or tomorrow although the algo number is almost 50 points under the signal line so the caution flag is not required at this time.

8/16/13; 9:00 AM EST =

8/15/13; 9:50 AM EST = +3; signal line is +51

8/15/13; 9:43 AM EST = +33; signal line is +53; go short 1669; (Benchmark SPX for 2013 = +17.0%)(Keybot this trade = -1.5%; Keybot for 2013 = +11.4%)(Actual this trade = -2.8%; Actual for 2013 = +4.8%)

8/14/13; 2:10 PM EST = +49; signal line is +54 but algorithm says stay long

8/14/13; 11:34 AM EST = +65; signal line is +54

8/14/13; 9:39 AM EST = +49; signal line is +54 but algorithm says stay long

8/13/13; 12:50 PM EST = +65; signal line is +54; go long 1694; (Benchmark SPX for 2013 = +18.8%)(Keybot this trade = -0.2%; Keybot for 2013 = +12.9%)(Actual this trade = -0.6%; Actual for 2013 = +7.6%)

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

Keybot the Quant is long moving into the Thursday session. Semiconductors slip negative again with the SOX dropping under 473.07. Bulls need the semi's to recover but tech may take a hit today due to lackluster CSCO earnings last evening. Bears need to push financials lower, the XLF under 20.12, to create strong market negativity. If the bears can push the SPX only one point lower after the opening bell, under 1685, and hold price under, Keybot will likely flip to the short side. The bulls need to push the SPX above 1695 to regain their mojo. A move through 1686-1694 is sideways action. The algo is also tracking VIX 14.20, RTH 54.15 and UTIL 483 with interest. All three parameters are creating market bullishness currently.

8/16/13; 9:00 AM EST =

8/14/13; 2:10 PM EST = +49; signal line is +54 but algorithm says stay long

8/14/13; 11:34 AM EST = +65; signal line is +54

STOCK MARKET BULLISH -- LONG -- CAUTION

Keybot the Quant remains bullish. SOX moves above the 473.07 bull-bear line so the bulls will set their sights on SPX 1697 now.

8/16/13; 9:00 AM EST =

8/14/13; 11:34 AM EST = +65; signal line is +54

8/14/13; 9:39 AM EST = +49; signal line is +54 but algorithm says stay long

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

Keybot the Quant is long as the Wednesday session is underway. The algo prints a number in the early going, due to SOX failing the 473.07 bull-bear danger line in the sand, that wants Keybot to whipsaw back to the short side but the internal programming rules will not allow the move as yet. If the SOX remains under 473.07, and the SPX either falls under 1677 before 12:50 PM, or under 1683 after 12:50 PM, Keybot will likely flip short. Bulls are fine if they keep SPX above 1683 today but will not be able to move equities higher unless the SOX regains 473.07.

8/16/13; 9:00 AM EST =

8/14/13; 9:39 AM EST = +49; signal line is +54 but algorithm says stay long

8/13/13; 12:50 PM EST = +65; signal line is +54; go long 1694; (Benchmark SPX for 2013 = +18.8%)(Keybot this trade = -0.2%; Keybot for 2013 = +12.9%)(Actual this trade = -0.6%; Actual for 2013 = +7.6%)

STOCK MARKET BULLISH -- LONG -- CAUTION

Keybot the Quant is bullish going into the Wednesday session. The bulls retake control with stronger semiconductors and financials, and lower volatility. The bulls need to push the SPX higher to touch the 1697 handle and the upside will accelerate to immediately test the critical 1699-1700 resistance, and then onward to 1707-1710. The bears need to push either the SOX under 473.15 (now above 479 creating bullishness) and/or the XLF under 20.12 (now at 20.44 creating market bullishness). Otherwise, the bears got nothing. If either the SOX or XLF fails, and the SPX drops under 1683, Keybot would likely whipsaw short. The bulls are driving the bus. 

8/16/13; 9:00 AM EST =

8/13/13; 12:50 PM EST = +65; signal line is +54; go long 1694; (Benchmark SPX for 2013 = +18.8%)(Keybot this trade = -0.2%; Keybot for 2013 = +12.9%)(Actual this trade = -0.6%; Actual for 2013 = +7.6%)

STOCK MARKET BULLISH -- LONG -- CAUTION

Keybot the Quant flips to the long side at SPX 1694 a short time ago. Semiconductors and financials move higher while volatility is crushed with the VIX down at 12.33. The trade over the last few days is flat. Keybot exits SDS and enters SSO. The bulls are driving the bus again but, as always, stay alert for a whipsaw move back to the short side either today or tomorrow.

8/16/13; 9:00 AM EST =

8/13/13; 12:50 PM EST = +65; signal line is +54; go long 1694; (Benchmark SPX for 2013 = +18.8%)(Keybot this trade = -0.2%; Keybot for 2013 = +12.9%)(Actual this trade = -0.6%; Actual for 2013 = +7.6%)

8/13/13; 10:38 AM EST = +65; signal line is +54 but algorithm says stay short

8/13/13; 10:22 AM EST = +49; signal line is +53

8/12/13; 10:10 AM EST = +65; signal line is +53 but algorithm says stay short

8/11/13; 7:00 PM EST = +49; signal line is +52

8/9/13; 12:45 PM EST = +49; signal line is +52

8/9/13; 12:34 PM EST = +65; signal line is +52 but algorithm says stay short

8/9/13; 11:00 AM EST = +49; signal line is +51

8/9/13; 10:43 AM EST = +65; signal line is +51 but algorithm says stay short

8/9/13; 9:30 AM EST = +49; signal line is +51

8/8/13; 11:40 AM EST = +51; signal line is +51 but algorithm says stay short

8/8/13; 10:10 AM EST = +35; signal line is +51

8/7/13; 1:35 PM EST = +51; signal line is +52

8/7/13; 1:16 PM EST = +65; signal line is +52 but algorithm says stay short

8/7/13; 12:17 PM EST = +49; signal line is +52

8/7/13; 10:55 AM EST = +65; signal line is +52 but algorithm says stay short

8/7/13; 10:38 AM EST = +49; signal line is +51

8/7/13; 10:26 AM EST = +33; signal line is +52

8/7/13; 9:35 AM EST = +49; signal line is +51; go short 1691; (Benchmark SPX for 2013 = +18.6%)(Keybot this trade = +5.6%; Keybot for 2013 = +13.1%)(Actual this trade = +4.0%; Actual for 2013 = +8.2%)

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

Keybot the Quant is short moving into the Tuesday session but the bulls appear ready to flip the algo back to the long side. Keybot wants to go long but is not yet able to trigger the move. If the SPX moves above 1691-1692, and stays above, Keybot will likely flip long. If there is a gap up opening of 11 or more points, Keybot will likely delay any action for about 90 minutes. The bears can prevent the flip to the long side if the SOX drops under 473.10 (now at 473.62) and/or the XLF drops under 20.12 (now at 20.34). The bears need to push the SPX under 1684 today to regain their mojo. A move through 1685-1690 is sideways action. S&P futures are +6 at this writing about four hours before the U.S. open so Keybot is likely set to flip back to the long side after the opening bell.

8/16/13; 9:00 AM EST =

8/12/13; 10:10 AM EST = +65; signal line is +53 but algorithm says stay short

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

Keybot the Quant remains short as the new week of trading begins, however, the bulls are fighting back by sending SOX above 473.10 (use this number as the bull-bear line rather than the 473.36) and volatility lower.  If the bulls can drive the SPX back above the 1699-1700 level and hold above, Keybot will likely flip back to the long side. Bears need to push semiconductors lower and the VIX higher. Keybot is now tracking financials, XLF, that may be falling into trouble. Watch XLF 20.15, now at 20.39 causing market bullishness. Bears will drive equity markets lower if XLF 20.15 fails.

8/16/13; 9:00 AM EST =

8/12/13; 10:10 AM EST = +65; signal line is +53 but algorithm says stay short

8/11/13; 7:00 PM EST = +49; signal line is +52

STOCK MARKET BEARISH -- SHORT -- CAUTION

Keybot the Quant is short moving into the new week of trading. Monday will be a fight between semi's and volatility. Watch SOX 473.36 and VIX 14.20. The bears will push equities firmly lower if volatility moves above 14.20. The bulls will recover and push equities higher if SOX moves above 473.36. If SOX stays under 473.36, and VIX stays under 14.20, the markets should stumble along sideways. If the SOX regains 473.36, and stays above, and the SPX moves above 1699, and stays above, Keybot will likely flip back to the long side. The imminent turn notation is not in the title line but the markets remain very much at a coin flip juncture. If SOX moves above 473.36, then a market turn to the bull side may be imminent.

For the SPX starting at 1691, the bulls need to push up through 1699 and touch the 1700 handle, if so, an upside acceleration will occur to 1707 and 1710. The bears need to push under 1686 to accelerate the downside into the 1670's. A move through 1687-1698 is sideways action for Monday. This week is huge for markets and may be the most important week of the year, despite the summer doldrums.  Equities are at an inflection point and should break hard one way or the other. Markets remain erratic, unstable and indecisive. Keybot prints two pre-scheduled numbers this week, both on Friday morning. Watch the semiconductors.

8/18/13; 7:00 PM EST =

8/16/13; 10:00 AM EST =

8/16/13; 9:00 AM EST =

8/11/13; 7:00 PM EST = +49; signal line is +52

8/9/13; 12:45 PM EST = +49; signal line is +52

STOCK MARKET BEARISH -- SHORT -- CAUTION

Keybot the Quant remains bearish through the weekend. Semiconductors and volatility are likely the two key parameters affecting market direction come Monday morning. The areas and levels of interest can be identified after the Sunday pre-scheduled number prints tomorrow.

8/11/13; 7:00 PM EST =

8/9/13; 12:45 PM EST = +49; signal line is +52

STOCK MARKET BEARISH -- SHORT -- CAUTION

Keybot the Quant remains short.  The bulls keep trying to boost semiconductors but SOX continues along under 473.36 causing market negativity. SPX is 1693.

8/11/13; 7:00 PM EST =

8/9/13; 12:45 PM EST = +49; signal line is +52

8/9/13; 12:34 PM EST = +65; signal line is +52 but algorithm says stay short

8/9/13; 11:00 AM EST = +49; signal line is +51

STOCK MARKET BEARISH -- SHORT -- CAUTION

Keybot the Quant remains short. The markets are an erratic circus today. SOX collapses under 473.36 again and note the weakness in equities. The imminent turn notation is removed, for now, but will quickly return if SOX moves back above 473.36. The beat goes on.

8/11/13; 7:00 PM EST =

8/9/13; 11:00 AM EST = +49; signal line is +51

8/9/13; 10:43 AM EST = +65; signal line is +51 but algorithm says stay short

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

Keybot the Quant remains short but the SOX moves back above 473.36 into the bull camp. If the SOX remains elevated above 373.36, and the SPX moves above 1700, Keybot will likely flip long. The algo is held back from flipping long since all the various programming rules are not lined up properly to allow the move. The bears need to push the SOX lower. The SPX is 1695 five points shy of the 1700 goal the bulls need.

8/11/13; 7:00 PM EST =

8/9/13; 10:43 AM EST = +65; signal line is +51 but algorithm says stay short

8/9/13; 9:30 AM EST = +49; signal line is +51

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

Keybot the Quant remains short. The comical high-drama continues with the SOX leaping into the bear camp at the same time the GTX leaps into the bull camp, a flip-flop, further verifying how the markets are in a knock-down drag-out bull-bear fight for control. The weaker semiconductors carry a bit more clout than stronger commodities. Watch SOX 473.36 and GTX 4795 to see how today's drama unfolds. The SPX is moving sideways but if the SOX turns bullish above 473.36, and stays above, and the SPX moves above 1700, and stays above, Keybot will likely flip long, hence, the imminent turn notation has to remain in the title line until a direction is firmly decided. Market bears remain in good shape if the SOX stays under 473.36 today.

8/11/13; 7:00 PM EST =

8/9/13; 9:30 AM EST = +49; signal line is +51

8/8/13; 11:40 AM EST = +51; signal line is +51 but algorithm says stay short

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

Keybot the Quant remains short. Semiconductors and commodities are dictating market direction. Watch SOX 473.36 and GTX 4795.  SOX begins the Friday session at 474.31, causing market bullishness, but only 95 cents from failure which would usher in market selling.  GTX is 4779, causing market bearishness, but only 16 bucks from the bull camp which would usher in a strong push higher for equities. Hence, a standoff, and one or the other is going to flinch sending markets in that direction. Note that the algo number and signal line are dead even at 51. The program keeps Keybot on the short side but it is in essence a coin flip. The Friday session is very important. Bears want to see weakness in tech.  Bulls want to see a weaker dollar and stronger commodities.

For the SPX starting at 1697, the bulls need to push up through 1700 and it is smooth sailing higher back to the 1707 and 1710 levels.  The bears need to push under 1688 to accelerate the downside.  A move through 1689-1699 is sideways action. Markets are at an inflection point right now and SOX 473.36 or GTX 4795 points the path forward. Markets remain erratic and unstable. The imminent turn notation is added in the title line since markets are a coin flip right now. At this writing about 3-1/2 hours before the opening bell, the S&P futures point to a drop of about 6 points in the SPX at the bell.

8/11/13; 7:00 PM EST =

8/8/13; 11:40 AM EST = +51; signal line is +51 but algorithm says stay short

8/8/13; 10:10 AM EST = +35; signal line is +51

STOCK MARKET BEARISH -- SHORT -- CAUTION

Keybot the Quant remains short.  The semiconductors broke down today with SOX falling under 473.36 into the bear camp causing market negativity. SOX is now at 471.60.  GTX is 4745 remaining well under the 4795 bull-bear line. Copper explodes higher with JJC over 40 firmly bullish. The algo tracks SOX 473.36 and GTX 4795 as the two key influences on market direction now. Bulls need to regain at least one of these two to stop the market selling, otherwise, markets will drift along with a negative bias. The bears need to push VIX above 14.20 to unleash market mayhem. The bears are driving the bus but markets remain erratic, unstable and indecisive.

8/11/13; 7:00 PM EST =

8/8/13; 10:10 AM EST = +35; signal line is +51

8/7/13; 1:35 PM EST = +51; signal line is +52

STOCK MARKET BEARISH -- SHORT -- CAUTION

Keybot the Quant is short and tomorrow the algo will decide if it wants to firmly commit to the bear side, or, whipsaw back to the long side. Three parameters control the markets and will determine the fate of equities; JJC 39.00, GTX 4795 and SOX 473.36. JJC starts the Thursday session at 39.08 causing bullishness, GTX is 4788 causing bearishness and SOX is 474.12 causing bullishness. Note that the inflection points are directly where price sits. There will be high drama. JJC is 8 pennies difference, GTX is only 7 bucks and SOX is less than a buck difference at 76 cents. Bears need lower copper (JJC) and semi's (SOX). Bulls need higher commodities (GTX). This is the battle field. Any move by any of the three parameters will send markets in that direction.

For the SPX starting at 1691, the bulls need to push above 1695 to create an upside acceleration. If this occurs watch GTX to see if the bulls receive rocket fuel. The bears need to push under 1685 to accelerate the downside. If this occurs watch JJC and SOX to see if the bears receive rocket fuel. A move through 1686-1694 is sideways action. Markets remain unstable and erratic. The bears are driving the bus but as the above description illustrates, it is a coin flip still yet. Thursday is a very important day. Watch copper trading overnight for an early read on the action.

8/11/13; 7:00 PM EST =

8/7/13; 1:35 PM EST = +51; signal line is +52

8/7/13; 1:16 PM EST = +65; signal line is +52 but algorithm says stay short

SPX Daily Chart Showing Keybot the Quant Algorithm Turns

Keybot the Quant flips to the short side today after the long 6-week uptrend. Note the sideways range at 1610-1675 so pay attention to these levels as time ticks by.  The sideways churn in June wreaks havoc on algo's but Keybot is navigating well. The sideways choppiness is created by the higher volatility.The chart shows the algo turns for 2013 thus far. Pay attention to JJC 39.00 (causing bullishness), GTX 4795 (causing bearishness) and SOX 473.36 (causing bullishness) to determine market direction forward.  The bears are driving the bus as the Thursday session begins. This information is for educational and entertainment purposes only.  Do not invest based on anything you read or view here.  Consult your financial advisor before making any investment decision.

STOCK MARKET BEARISH -- SHORT -- CAUTION

Keybot the Quant is short as the session motors along. Two more numbers print. GTX collapsed through the 4795 level which causes market bearishness but JJC is above 39.00 and SOX is above 473.36 creating bullishness. Keep watching these three parameters since they dictate market direction.

8/11/13; 7:00 PM EST =

8/7/13; 1:35 PM EST = +51; signal line is +52

8/7/13; 1:16 PM EST = +65; signal line is +52 but algorithm says stay short

8/7/13; 12:17 PM EST = +49; signal line is +52

8/7/13; 10:55 AM EST = +65; signal line is +52 but algorithm says stay short

STOCK MARKET BEARISH -- SHORT -- CAUTION

Keybot the Quant is short as the activity continues today. Semiconductors gain importance. Watch SOX 473.36 which will add bear fuel to the market downside if it fails. Ditto GTX 4795. The bulls continue to try and move JJC above 39.00; price is now at 38.99 one penny away. The bears are driving the bus but the fight continues for control of the steering wheel. JJC 39.00, GTX 4795 and SOX 473.36 dictate market direction.

8/11/13; 7:00 PM EST =

8/7/13; 12:17 PM EST = +49; signal line is +52

8/7/13; 10:55 AM EST = +65; signal line is +52 but algorithm says stay short

8/7/13; 10:38 AM EST = +49; signal line is +51

8/7/13; 10:26 AM EST = +33; signal line is +52

8/7/13; 9:35 AM EST = +49; signal line is +51; go short 1691; (Benchmark SPX for 2013 = +18.6%)(Keybot this trade = +5.6%; Keybot for 2013 = +13.1%)(Actual this trade = +4.0%; Actual for 2013 = +8.2%)

STOCK MARKET BEARISH -- SHORT -- CAUTION

Keybot the Quant flips to the short side after the opening bell today at SPX 1691. Copper remains weak but JJC is already recovering, now at 38.85, only fifteen cents from the 39.00 bull-bear line. GTX is 4812 remaining above the 4795 bull-bear line. Stay alert for a whipsaw move either today or tomorrow. So far the bears are pushing lower and the algo finally changes direction after almost 6 weeks of upside. The algo program gained near 6% on the last move while the actual trading gained 4%. The algo exited DIA and entered SDS. Watch JJC 39.00 to see if a whipsaw move occurs.

8/11/13; 7:00 PM EST =

8/7/13; 9:35 AM EST = +49; signal line is +51; go short 1691; (Benchmark SPX for 2013 = +18.6%)(Keybot this trade = +5.6%; Keybot for 2013 = +13.1%)(Actual this trade = +4.0%; Actual for 2013 = +8.2%)

8/6/13; 10:55 AM EST = +49; signal line is +50 but algorithm says stay long

8/6/13; 9:30 AM EST = +65; signal line is +50

8/4/13; 7:00 PM EST = +49; signal line is +50 but algorithm says stay long

8/2/13; 11:55 AM EST = +49; signal line is +50 but algorithm says stay long

8/2/13; 9:30 AM EST = +65; signal line is +49

8/2/13; 9:00 AM EST = +49; signal line is +49 but algorithm says stay long

8/1/13; 11:18 AM EST = +49; signal line is +48

8/1/13; 10:19 AM EST = +65; signal line is +47

8/1/13; 10:04 AM EST = +49; signal line is +46

8/1/13; 9:30 AM EST = +65; signal line is +45

7/31/13; 7:00 PM EST EOM = +49; signal line is +42

7/31/13; 9:50 AM EST = +49; signal line is +41

7/31/13; 9:36 AM EST = +35; signal line is +40 but algorithm says stay long

7/30/13; 10:00 AM EST = +49; signal line is +39

7/30/13; 9:31 AM EST = +50; signal line is +38

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

7/28/13; 7:00 PM EST = +50; signal line is +36

7/26/13; 10:00 AM EST = +50; signal line is +35

7/24/13; 12:23 PM EST = +50; signal line is +34

7/23/13; 10:57 AM EST = +66; signal line is +33

7/22/13; 11:44 AM EST = +50; signal line is +30

7/22/13; 10:30 AM EST = +66; signal line is +29

7/21/13; 7:00 PM EST = +50; signal line is +27

7/17/13; 10:57 AM EST = +50; signal line is +24

7/17/13; 10:46 AM EST = +36; signal line is +21

7/17/13; 10:34 AM EST = +50; signal line is +19

7/17/13; 9:00 AM EST = +36; signal line is +16

7/16/13; 11:33 AM EST = +36; signal line is +13

7/14/13; 7:00 PM EST = +50; signal line is +11

7/12/13; 10:00 AM EST = +50; signal line is +8

7/10/13; 4:00 PM EST = +49; signal line is +6

7/10/13; 2:37 PM EST = +35; signal line is +3

7/10/13; 2:12 PM EST = +49; signal line is +1

7/8/13; 10:20 AM EST = +35; signal line is -2

7/7/13; 7:00 PM EST = +19; signal line is -3

7/5/13; 9:00 AM EST = +19; signal line is -4

7/3/13; 9:30 AM EST = +19; signal line is -4

7/2/13; 1:38 PM EST = +5; signal line is -3

7/2/13; 9:46 AM EST = +21; signal line is -2

7/1/13; 1:49 PM EST = +5; signal line is -1

6/30/13; 7:00 PM EST EOM EOQ2 EOH1 = +21; signal line is +0

6/28/13; 10:00 AM EST = +21; signal line is +1

6/26/13; 12:59 PM EST = +21; signal line is +1

6/26/13; 12:51 PM EST = +5; signal line is +2

6/26/13; 11:47 AM EST = +21; signal line is +4

6/26/13; 10:55 AM EST = +5; signal line is +5 but algorithm says stay long

6/26/13; 10:42 AM EST = +21; signal line is +6

6/26/13; 10:29 AM EST = +5; signal line is +7 but algorithm says stay long

6/26/13; 9:31 AM EST = +21; signal line is +7; go long 1601; (Benchmark SPX for 2013 = +13.7%)(Keybot this trade = +1.5%; Keybot for 2013 = +7.5%)(Actual this trade = +0.5%; Actual for 2013 = +4.2%)

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

Keybot the Quant remains long. Copper remains in the bear camp (JJC under 39.00).  Volatility remains in the bull camp under VIX 14.20 and GTX is also causing market bullishness above GTX 4795. These three parameters remain key tomorrow. Watch JJC 39.00 since it will tell you market direction. For the SPX starting at 1697, the bulls need to touch the 1706 handle and the upside party will resume. The bears need to push under 1693 and the selling will begin in force. A move through 1694-1705 is sideways action

Keybot was within seconds of flipping short today but the programming rules would not lock in and then the SPX did recover from 1693 to the 1697 close. If JJC stays under 39.00 and the SPX drops under 1693, and remains under, Keybot will likely flip short. If a gap down open occurs of 11 or 12 SPX points or more, this will likely trigger a 90-minute timer that may delay a flip to the bear side. JJC 39.00 tells the story; bulls win above, bears win below. Markets remain very erratic and unstable.

8/11/13; 7:00 PM EST =

8/6/13; 10:55 AM EST = +49; signal line is +50 but algorithm says stay long

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

Keybot the Quant remains long. Copper collapses under 39 but the algo's internal programming rules will not yet line up properly for the bear side. The algo is currently hunting for SPX 1693.29, if this fails, and holds lower for 7 to 10 minutes, Keybot will likely flip short. JJC must stay under 39 (now at 38.94) or the bear case will be nullified. This is a big day for markets. At the same time, watch GTX 4800, now at 4812. If 4800 fails, that should lock in the bear case forward.

8/11/13; 7:00 PM EST =

8/6/13; 10:55 AM EST = +49; signal line is +50 but algorithm says stay long

8/6/13; 9:30 AM EST = +65; signal line is +50

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

Keybot the Quant remains bullish, so far today. Keybot prints the first number for the week. The bears cannot catch a break. The last couple days copper was weak but the SPX would not fall. Today, the SPX leaks lower but now copper has recovered back above JJC 39.02, so the bears are left at the altar once again. JJC is now printing 39.04, only two cents above the bull-bear danger line at 39.02 that will usher in increased market negativity. If JJC drops under 39.02, and the SPX drops under 1697, Keybot will likely flip short. If JJC remains above 39.02, the bears got nothing and the broad indexes should recover as the day moves along. Markets remain unstable.

8/11/13; 7:00 PM EST =

8/6/13; 9:30 AM EST = +65; signal line is +50

8/4/13; 7:00 PM EST = +49; signal line is +50 but algorithm says stay long

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

Keybot the Quant remains long as the week begins on a flat note. The bears keep JJC under 39.02, but could not move the SPX under 1701, so they got nothing. The algo continues to track copper as the key parameter dictating market direction as well as commodities and volatility. Watch JJC 39.02, GTX 4800 and VIX 14.20. Copper is causing bearishness while commodities and volatility are creating bullishness, respectively.

For the SPX today, starting at 1707, bulls need to move above 1709 to accelerate the upside while the bears need to push under 1704 to accelerate the downside. A move through 1705-1708 is sideways action and such a tight range that a move either higher or lower is more likely. If JJC stays under 39.02, and the SPX drops under 1704, and stays under, Keybot will likely flip short, hence the imminent turn notation remains in the title line. However, in early trading, as this missive is typed, copper is up 1% and would send JJC to 39.30-ish at the opening bell crushing any bear hope. Markets remain erratic and unstable. Futures indicate a slightly down open at this time but bulls have no worries if copper moves higher.

8/11/13; 7:00 PM EST =

8/4/13; 7:00 PM EST = +49; signal line is +50 but algorithm says stay long

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

Keybot the Quant is long moving into the Monday session but, as evidenced by the algo number under the signal line, wants to go short. The internal programming rules have not yet lined up properly to trigger the move to the short side. One of the major parameters the bears need is the SPX dropping under 1701 in Monday trading. Thus, if JJC stays under 39.02, and the SPX drops under 1701, and stays under 1701, Keybot will likely flip to the bear side. If copper is bullish overnight and JJC moves above 39.02, the market bulls are fine and will have an easy Monday ahead. VIX 14.25 remains a key level the bears need to initiate significant market selling.  GTX 4790 is also important and will add bear fuel if it fails.

For the SPX starting at 1710, closing at the highs on Friday, the bulls only need a tiny smidge of green showing in the overnight futures and it is off to the races higher once again with the SPX moving up into the mid 1710's on its way to a print above 1720 moving forward. The bears must push under 1701 to begin a downside acceleration into the 1690's. A move through 1702-1709 is sideways action for Monday. The algo does not print any pre-scheduled numbers this week. The broad indexes remain very erratic and unstable. JJC 39.02, SPX 1710 and 1701 will tell the market story.

8/11/13; 7:00 PM EST =

8/4/13; 7:00 PM EST = +49; signal line is +50 but algorithm says stay long

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

Keybot the Quant remains long through the weekend but the algo wants to go short; the algo number is under the signal line. Thus, if the SPX drops under 1700, and other internal rules click into place, Keybot will likely flip short. If the SPX gaps down on Monday morning about 11 points or more, this would delay the move to the short side for about 90 minutes. The bears have it within their grasp. The key metric affecting market direction right now is copper. Watch JJC 39.02. Other areas and levels of interest can be identified for next week once the Sunday pre-scheduled number prints tomorrow. The imminent turn notation is added in the title line. Monday is an important session and copper will tell the story overnight Sunday. Bulls win if copper moves higher. Bears win if copper moves lower.

8/4/13; 7:00 PM EST =

8/2/13; 11:55 AM EST = +49; signal line is +50 but algorithm says stay long

8/2/13; 9:30 AM EST = +65; signal line is +49

STOCK MARKET BULLISH -- LONG -- CAUTION

Keybot the Quant remains long although the algo wants to flip short again. This is the fourth time this week the algo threatens to move to the bear side. JJC fell back under 39.02 to help the bears out today and discourage the bulls. However, volatility is crushed with the VIX down at 12.11 so the bears cannot develop any energy. The battle of copper and volatility, JJC 39.02 and VIX 14.26, will continue into next week. If the SPX would collapse into the closing bell and drop under 1690, Keybot will likely flip short, however, this is a tall order and the markets will likely prefer to dribble out sideways into the weekend with an upward buoyancy. The bears and bulls have a truce until JJC 39.02 or VIX 14.26 makes a decision and sends markets in that respective direction.

8/4/13; 7:00 PM EST =

8/2/13; 11:55 AM EST = +49; signal line is +50 but algorithm says stay long

8/2/13; 9:30 AM EST = +65; signal line is +49

8/2/13; 9:00 AM EST = +49; signal line is +49 but algorithm says stay long

8/1/13; 11:18 AM EST = +49; signal line is +48

8/1/13; 10:19 AM EST = +65; signal line is +47

8/1/13; 10:04 AM EST = +49; signal line is +46

8/1/13; 9:30 AM EST = +65; signal line is +45

7/31/13; 7:00 PM EST EOM = +49; signal line is +42

7/31/13; 9:50 AM EST = +49; signal line is +41

7/31/13; 9:36 AM EST = +35; signal line is +40 but algorithm says stay long

7/30/13; 10:00 AM EST = +49; signal line is +39

7/30/13; 9:31 AM EST = +50; signal line is +38

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

7/28/13; 7:00 PM EST = +50; signal line is +36

7/26/13; 10:00 AM EST = +50; signal line is +35

STOCK MARKET BULLISH -- LONG -- CAUTION

Keybot the Quant remains long. The pre-scheduled number results in the algo wanting to go short again but the internal programming rules are not lined up properly for the move. Copper is up today and at the opening bell JJC jumps above the 39.02 bull-bear line so the bulls are not worried about any initial market weakness today. Higher copper will provide upside fuel for equities. Volatility is pushed lower which will also help the bulls. SPX is at 1704. Bulls need to touch 1708 to ignite the upside. Bears got nothing unless they can push JJC back under 39.02.

8/4/13; 7:00 PM EST =

8/2/13; 9:30 AM EST = +65; signal line is +49

8/2/13; 9:00 AM EST = +49; signal line is +49 but algorithm says stay long

8/1/13; 11:18 AM EST = +49; signal line is +48

STOCK MARKET BULLISH -- LONG -- CAUTION

Keybot the Quant remains bullish. The bulls send markets higher after pushing utilities higher a couple weeks ago (UTIL), then semiconductors, remember the drama with SOX a few days ago, then with commodities where GTX failed at 4785 only to recover and now catapult over 4900. These bullish moves send the SPX to new all-time highs and brings the markets to a battle of copper versus volatility. Copper is strong the last couple days after China pledges to maintain high growth rates. JJC moved above the 39.02 bull-bear line today but then closed below remaining in the bear camp. It is surprising to see the SPX sustain today's move even though copper leaked lower. For tomorrow, same-o deal, bulls need JJC 39.02 and bears need VIX 14.26.

For the SPX starting at a new all-time high at 1707, the bulls need to touch the 1708 handle and it is off to the races higher once again. Typically after a big up day, or down day, markets will tend to move sideways to absorb some of that power. The bears need to retrace the big up move and push under 1690 to regain their mojo. In these markets, anything can happen. A move through 1691-1707 is sideways action. Keybot prints a pre-scheduled number tomorrow morning before the opening bell so the action can be updated at that time. Despite the euphoric rally, the algo number is only one-point from the signal line. Markets remain erratic, unstable and are not to be trusted.

8/2/13; 9:00 AM EST =

8/1/13; 11:18 AM EST = +49; signal line is +48

STOCK MARKET BULLISH -- LONG -- CAUTION

Keybot the Quant remains long as an active day for the algo continues. Copper is having trouble deciding between the bull and bear camps. JJC drops under 39.02 back in the bear camp. Markets should float higher if JJC moves above 39.02 and should sell off if JJC is under 39.02. The caution flag is listed again since the algo number and signal line are now only one-point difference.

8/2/13; 9:00 AM EST =

8/1/13; 11:18 AM EST = +49; signal line is +48

8/1/13; 10:19 AM EST = +65; signal line is +47

STOCK MARKET BULLISH -- LONG

Keybot the Quant remains long as JJC oscillates to and fro along the 39.02 bull-bear line in the sand. The SPX prints a new all-time high at 1704.97. The bulls are cruising but markets remain unstable.

8/2/13; 9:00 AM EST =

8/1/13; 10:19 AM EST = +65; signal line is +47

8/1/13; 10:04 AM EST = +49; signal line is +46

8/1/13; 9:30 AM EST = +65; signal line is +45

STOCK MARKET BULLISH -- LONG

Keybot the Quant remains long. Copper is the winner today breaking the sideways log jam the last few days in favor of the bulls. Watch JJC 39.01, now at 39.10 creating market bullishness. VIX dropped under 13 at the opening bell and now sits at 13.02 well under the 14.26 the bears need. The SPX breaks up through 1698.50 at the opening bell which accelerates price to a HOD at 1702.25, new all-time highs. The bulls are on cruise control again so the caution flag is removed. Bears got nothing unless they first push JJC back under 39.01.

8/2/13; 9:00 AM EST =

8/1/13; 9:30 AM EST = +65; signal line is +45

7/31/13; 7:00 PM EST EOM = +49; signal line is +42