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

Keybot the Quant remains short but the algo is champing at the bit to go long. The internal programming rules have not yet lined up properly to allow the move to the bull side, and the wild upside bull price spike occurs in the final seconds of the session today. Keybot was very active today printing 7 numbers. To boil it down to something simple, if the SPX gains only one point tomorrow and moves above 1696.50, Keybot will likely flip long.

The bears can prevent the algo from flipping bullish if any one of the following levels are attained; XLF 20.01, JJC 40.13 and/or UTIL 483.53. All 3 parameters are bullish but only by small amounts that can easily reverse. The opening bell is critical. If all 3 parameters remain bullish, Keybot will likely be flipping to the long side. If the S&P futures are up a point or two overnight, that will likely lock in the move to the long side tomorrow. Markets remain erratic, unstable and indecisive. Tomorrow after the opening bell an important decision will be made. Bulls need SPX 1697+ and its time to pop the champagne corks as price moves above 1700. Bears need weaker financials, copper and/or utilities to celebrate, otherwise, they got nothing and will fold like a cheap suit. 

10/6/13; 7:00 PM EST =

10/4/13; 9:00 AM EST =

10/1/13; 3:59 PM EST = +50; signal line is +39 but algorithm remains short

10/1/13; 2:24 PM EST = +18; signal line is +40

10/1/13; 2:18 PM EST = +34; signal line is +42

10/1/13; 12:35 PM EST = +50; signal line is +43 but algorithm remains short

10/1/13; 11:36 AM EST = +34; signal line is +43

10/1/13; 9:32 AM EST = +18; signal line is +43