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

Keybot the Quant remains short after a wild day of market action. The bulls were in position twice today to flip Keybot long but they did not yet have enough juice. This sets up for a big market decision for Thursday. Copper remains the top influence on market direction right now. Watch JJC 39.93, now at 39.87, only 6 pennies away, causing bearishness in equities. Thus, as copper goes so goes equities. Watch the copper trading overnight since it will likely tell you the direction of equities tomorrow. In addition, retail, financials and semiconductors are also very important; RTH 53.74 (now at 53.59 causing negativity), XLF 19.98 (now at 19.75 causing negativity) and SOX 467.60 (now at 473.56 causing bullishness). The upside orgy in semi's was remarkable today, +2.6%. Any move of JJC, RTH or XLF to the bull camp will cause equities to move higher and a move in SOX to the bear camp will usher in the market negativity again.

For the SPX starting at 1653, the bulls need to touch the 1656 handle and an upside acceleration will be in full gear with the SPX heading into the 1660's. If either JJC, RTH and/or XLF turn bullish, as described above, any one of the three, and if the SPX touches 1656 and stays above, Keybot will likely flip to the long side. The bears need to push under 1638 to accelerate the downside, 15 points lower, a formidable task but not impossible. A move through 1639-1655 is sideways action for Thursday. The bears are driving the bus but a turn to the bull side may be imminent. Watch copper overnight.

9/6/13; 9:00 AM EST =

9/4/13; 1:59 PM EST = -15; signal line is -8

9/4/13; 1:29 PM EST = +1; signal line is -8 but algorithm remains short

9/4/13; 1:10 PM EST = -15; signal line -8

9/4/13; 12:12 PM EST = +1; signal line is -8 but algorithm remains short