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

Keybot the Quant remains short through the weekend. The algo idles along in Friday's shortened session without printing any numbers. The odd market action continues with the SPX over 50 handles away from where the algo entered short. Keybot never hesitates to flip sides and register a loss, all it sees are 1's and 0's, but the model still will not trigger the move to the long side as yet. Utilities, copper and volatility appear to be the priority currently. UTIL closed at 487.13 below 490.63 helping bears but above 482.94 helping bulls. Interesting how the 487 is in the middle of the 483 and 491. The direction the utilities move should dictate market direction. Note the big spike in volatility in the final minutes of trading. Markets are sneaky. VIX is 13.70. Bears can pop the champagne corks if VIX gains only 19 more pennies to VIX 13.89 and higher. Next week's areas and levels of interest can be identified once the pre-scheduled Sunday number prints tomorrow. November was another up month for markets. 

12/1/13; 7:00 PM EST EOM =

11/27/13; 10:00 AM EST = +30; signal line is +36

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

Keybot the Quant remains short through the Thursday holiday. Happy Thanksgiving. Happy Hanukkah. The bulls keep pushing higher and will receive upside confirmation with stronger utilities, copper and commodities, but all 3 remain bearish. Watch UTIL 490.64 and 481.68, now at 487.16 creating market bearishness under 490.64 but creating bullishness above 481.68. Bulls need UTIL above 490.64 and the SPX will run towards the 1820's. Bears need UTIL under 482 and this will confirm that the much-awaited market selling is finally here. For next week, UTIL 490.64 and 482.94 will be the 2 important numbers so in Friday's trade, moving into the early close at 1 PM EST, watch to see where UTIL settles. If UTIL finishes the week under 483, the market bears will have an advantage next week. The UTIL 478-485 range is important for the next 7 weeks and a major tell on markets. If UTIL loses 483 in the coming days and then the lower end of the range under 480 and 478 and lower, the broad indexes will be selling off in force. If UTIL drifts higher and stays above 483 and higher, and moves above 491, the bulls are on easy street moving forward. For Friday, if UTIL moves above 490.64 and/or JJC above 39.94, and the SPX moves above 1808.50, and remains above, Keybot will likely flip long.

Semiconductors are on a wild ride lately moving 1% per day, up and down, over the last 2 weeks. Bears need weaker semi's to lock in the market downside. The algo is also focused on volatility; VIX 13.90.  VIX is 12.98 causing market bullishness but less than one point away from the 13.90 bull-bear danger line. Bad things will happen to markets if the VIX moves above 13.90. Bulls will be drinking wine without a care in the world as long as VIX stays under 13.90. For the SPX starting at 1807, the bulls need to push above 1808.50, only 1-1/2 point higher, and an upside acceleration will occur with the SPX moving toward 1820. The bears need to push under 1803 to accelerate the downside. A move through 1804-1808 is sideways action for the Friday shortened session. Watch UTIL 490.64, VIX 13.90 and SPX 1808.50 and 1803 to determine market direction.

12/1/13; 7:00 PM EST EOM =

11/27/13; 10:00 AM EST = +30; signal line is +36

11/26/13; 10:20 AM EST = +30; signal line is +36

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

Keybot the Quant remains short as markets continue dancing on a knife-edge. UTIL remains under 490.64 all day long so this placed the bears at ease. JJC is 39.10 under the 39.77 bull-bear line in the sand also helping bears. VIX is 12.81 under the 13.90 line in the sand helping bulls. Thus, bears need VIX above 13.90 while the bulls need UTIL above 490.64 and/or JJC above 39.77. If either utilities or copper turn bullish, and the SPX moves above 1808.50, and remains above, Keybot will likely flip long.

For the SPX starting at 1803, the bulls need to push above 1808.50 to accelerate the upside and the bears need to push under 1801 to accelerate the downside. If the overnight S&P futures are -2 and lower, the bears will receive the nod. A move through 1802-1808 is sideways action. Markets are very unstable. Keybot prints a pre-scheduled number at 10 AM. Bears need VIX 13.90 to show that markets are committed to move lower. Bulls need UTIL 490.64 to show that markets are committed to move higher.

12/1/13; 7:00 PM EST EOM =

11/27/13; 10:00 AM EST =

11/26/13; 10:20 AM EST = +30; signal line is +36

11/26/13; 10:00 AM EST = +46; signal line is +37 but algorithm remains short

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

Keybot the Quant remains short as the Tuesday session is well underway. Semiconductors are higher helping bulls. Copper is weaker helping bears. Utilities collapse under the bull-bear danger line at UTIL 490.64. It is surprising to not see equities sell off; the weak utes should be pushing the broad indexes lower. The imminent turn notation will remain since anything can happen in these erratic and unstable markets. The algo needs to see UTIL above 490.65 and SPX above 1808, and both stay above, for Keybot to flip long. One day is stranger than the next.

11/27/13; 10:00 AM EST =

11/26/13; 10:20 AM EST = +30; signal line is +36

11/26/13; 10:00 AM EST = +46; signal line is +37 but algorithm remains short

11/26/13; 9:00 AM EST = +46; signal line is +37 but algorithm remains short

11/25/13; 9:37 AM EST = +46; signal line is +37 but algorithm remains short

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

Keybot the Quant remains short, but wants to flip long, as the erratic and strange market behavior continues. If the SPX moves above 1808.10, and stays above, Keybot will likely flip long. The algo is tracking 4 key parameters currently; UTIL 490.68 (now at 493.88 causing market bullishness), SOX 498.52 (now at 504.01 causing market bullishness), VIX 13.90 (now at 12.79 causing bullishness) and JJC 39.80 (now at 39.42 causing bearishness). Thus, bears need lower utilities, semiconductors and/or higher volatility while bulls need higher copper, respectively.

For the SPX starting at 1802, the bulls need to punch up through 1808.10 and a big upside party results moving price towards 1815. The bears need to push under 1801 to accelerate the downside, only one point lower. A move through 1802-1807 is sideways action. S&P futures are dead flat at this writing about 5 hours before the opening bell. Keybot prints 2 pre-scheduled numbers today, one before the opening bell and the next shortly after. Keybot is on the verge of flipping long. If there is a gap-up opening, a timer may kick in prohibiting the algo from flipping long for about 90 minutes, but this does not appear to be the case. The bulls have it on a silver platter, all they need is SPX 1808+.

11/27/13; 10:00 AM EST =

11/26/13; 10:00 AM EST =

11/26/13; 9:00 AM EST =

11/25/13; 9:37 AM EST = +46; signal line is +37 but algorithm remains short

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

Keybot the Quant remains short as the new week motors along. The algo wants to flip to the long side but internal programming rules keep holding it back. The SPX highs are important numbers with the HOD currently at 1808.10. If the SPX moves above 1808.10 and stays above heading higher, Keybot will likely flip long. The strange market action continues. Semiconductors are weak today. UTIL is 495.53 well above the 490.70 danger line (use this level instead of 489.85). Keybot is on the verge of going long. Bears need UTIL under 490.70 and/or SOX under 498.50 to create downside mojo.

11/26/13; 9:00 AM EST =

11/25/13; 9:37 AM EST = +46; signal line is +37 but algorithm remains short

11/24/13; 7:00 PM EST = +30; signal line is +37

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

Keybot the Quant remains short but this may finally change come tomorrow morning. The algo number is under the signal line but shortly after the opening bell the higher utilities sector should create the set-up for the algo to flip long. If UTIL remains above 489.85, and the SPX moves above 1805, and stays above, Keybot will likely flip long. The bulls may also gain strength with copper and/or commodities so watch JJC 39.90 and GTX 4819.

Overnight tonight watch the S&P futures since any hint of green is going to create bullish happiness and the SPX heading to 1810+. The bears need to keep the futures negative and bring game tomorrow morning at the opening bell to push the SPX under 1795 to regain downside mojo. A move through 1796-1804 is sideways action to begin the week. Weaker utilities, semiconductors and/or financials would help the bears. Keybot prints 3 pre-scheduled numbers before Thanksgiving. If Keybot flips long, the anticipation is that the algo would likely whipsaw to the downside again in a day or 3's time, but in these markets anything is game. Markets remain erratic and unstable.

12/1/13; 7:00 PM EST EOM =

11/27/13; 10:00 AM EST =

11/26/13; 10:00 AM EST =

11/26/13; 9:00 AM EST =

11/24/13; 7:00 PM EST = +30; signal line is +37

11/21/13; 9:39 AM EST = +30; signal line is +39

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

Keybot the Quant remains short through the weekend but the bulls have a big advantage at Monday's bell with UTIL at 495.31 comfortably above the important algo numbers at 489.85 and 481.68. If the bulls can keep the Sunday overnight futures positive, and move the SPX higher at the opening bell, Keybot will likely flip to the long side. The market theatrics continue with the SPX printing new all-time highs. The price action is unprecedented in Keybot's history so it will be interesting to see how it plays out. Monday, Tuesday and Wednesday may be wild days of trading. The importance of the first one-half hour of trading on Monday cannot be understated. Next week can be mapped out in better detail once the Sunday pre-scheduled number prints tomorrow.

11/24/13; 7:00 PM EST =  

11/21/13; 9:39 AM EST = +30; signal line is +39

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

Keybot the Quant remains short. The SPX continues the sideways shuffle through 1780-1800 for the last 6 days. Bulls need higher utilities, copper and/or commodities to provide a go-signal for further market upside but none of the 3 appear enthusiastic. Watch UTIL 503.04 for today only. If UTIL moves above 503.04, and the SPX prints above 1797 and higher, and stays above, Keybot will likely flip long. UTIL begins at 495.87 well under the 503.04 which hints that markets may simply meander sideways into the weekend, however, the important UTIL numbers for next week are 489.85 and 481.68, far easier target levels for market bulls to remain above. Thus, this afternoon, at the 4 PM close, watch UTIL to see if it prints under 490, or not. Market bears want to see UTIL under 490, otherwise, the bulls will receive upside market juice come Monday morning.

For the SPX starting at 1796, the bulls only need one point higher, to punch up through 1797, and the upside party continues over 1800. The bears need to retrace yesterday's up move, a formidable task but not impossible (the bulls retraced Wednesday's sell off yesterday), and push under 1784 to get their mojo back. A move through 1785-1796 is sideways action. The S&P futures are -1 at this writing about 3-1/2 hours before the opening bell. The imminent turn notation is in the title line but without higher utes, copper and/or commodities, the bulls may have a difficult path for flipping the algo long. Markets remain erratic and unstable. The UTIL 490-ish level at today's closing bell will tell a lot.

11/24/13; 7:00 PM EST =  

11/21/13; 9:39 AM EST = +30; signal line is +39

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

Keybot the Quant remains short during another odd market day. SOX catapulted higher providing bull oomph and volatility dropped further also helping lift markets today. UTIL stays under 503.04 in the bear camp. The SPX tags the 1795-1796 area today, the bulls recovering from yesterday's drop, but currently, the SPX has not pushed up through.  Utilities, copper or commodities need to turn bullish to help lock in the market upside and they are not currently cooperating. The imminent turn notation returns once again.  If UTIL moves above 503.04, and SPX above 1796 and higher, Keybot will likely flip long. Otherwise, Keybot will likely remain short into the closing bell.

11/24/13; 7:00 PM EST =  

11/21/13; 9:39 AM EST = +30; signal line is +39

11/20/13; 2:43 AM EST = +14; signal line is +39

STOCK MARKET BEARISH -- SHORT -- CAUTION

Keybot the Quant remains short as the market dramatics continue. UTIL stays under 503.04, now under 500, and SOX fails at 497.12 ushering in today's market weakness. VIX remains under 13.97 helping bulls. These 3 parameters remain key for Thursday. If they remain status quo, markets will float sideways. Bulls need either UTIL 503.04 or SOX 497.12 to send stocks higher.  Bears need VIX 13.97 to usher in the next leg lower for stocks. For next week, UTIL 481.68 is a key number, an easier level for the bulls. UTIL 489.85 is the trap-door number where bad things will happen to markets quickly. Therefore, as tomorrow and Friday plays out into the weekend, watch to see how UTIL reacts to the 481-489 price area.

For the SPX for Thursday starting at 1781, the bulls need to touch the 1796 handle to create upside mojo. Since this goal is 15 handles higher, a formidable task but not at all impossible, the bulls will be happy and content if either utilities or semiconductors recover as described above, to stop the market slide. The bears need to push under 1777 to accelerate the downside. A move through 1778-1795 is sideways action. The algo number is now 25 points under the signal line so the imminent turn notation is removed from the title line. The bears are driving the bus.

11/24/13; 7:00 PM EST =  

11/20/13; 2:43 AM EST = +14; signal line is +39

11/20/13; 10:43 AM EST = +30; signal line is +40

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

Keybot the Quant remains short on a day of wild market action. SOX failed under the 497.14 bull-bear line in the sand but recovered. UTIL popped above 503.04 but retreated back under. VIX spiked to near 13.97 at the opening bell and fell. Thus, status quo currently. UTIL was above 503.04 and the SPX attacked the 1795.50 level which should trigger the algo to flip long, but the bulls could not hold the levels. Thus, the imminent turn notation is listed again since the algo was just a hair away from going long. Markets can go either way. Watch UTIL 503.04, SOX 497.14, VIX 13.97 and SPX 1795.73 and 1785. The drama continues.

11/24/13; 7:00 PM EST =  

11/20/13; 10:43 AM EST = +30; signal line is +40

11/20/13; 10:00 AM EST = +46; signal line is +40 but algorithm remains short

11/19/13; 1:01 PM EST = +30; signal line is +41

STOCK MARKET BEARISH -- SHORT -- CAUTION

Keybot the Quant remains short. The market soap opera plays on. Semiconductors collapse today. The algo now latches onto SOX 497.09 as a bull-bear line in the sand. SOX is 497.88 only 79 pennies away from creating a strong down leg for equities. The semi's will tell you a lot moving forward. The battle on Wednesday will be semi's versus utilities. UTIL dropped under 503.04 today ushering in the market negativity. UTIL is 502.58. Bulls will be happy and heading back up over SPX 1800 with UTIL 503.04. Bears will continue to foster market negativity if UTIL stays under 503.04.

Volatility is a second tier priority that Keybot highlights; VIX 13.97 is the bull-bear line in the sand. VIX has moved higher over the last couple days now at 13.39. VIX 13.97 would usher in a strong down leg for markets. For the SPX starting at the 1788, which acted as a pivot all day long, the bulls need to push above 1795.50 and an upside acceleration will occur sending the SPX back towards 1800. Watch the strong 1791-1792 resistance. The bears need to push under 1785 to accelerate the downside. A move through 1786-1795 is sideways action.

Watch UTIL 503.04, SOX 497.09, VIX 13.97 and SPX 1795.50 and 1785 to determine market direction. For now, the imminent turn status is removed from the title line after being in place for the last one and one-half weeks. If UTIL moves above 503.04, consider the imminent turn status to be in immediate effect again and the bulls are making a charge higher. If UTIL moves above 503.04 and SPX moves above 1795.50 and higher, and both stay above, Keybot will likely flip long. If SOX loses 497.09 and/or VIX 13.97 occurs, equities are heading lower. Markets remain erratic and unstable.

11/24/13; 7:00 PM EST =  

11/19/13; 1:01 PM EST = +30; signal line is +41

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

Keybot the Quant remains short as the algo prints three numbers thus far today. UTIL falls under 503.04 creating market negativity but the fight continues. The algo is now tracking semiconductors with interest. Watch SOX 496.92, now at 499.56, less than 3 points away. If the SOX 496.92 bull-bear danger line fails, equities will take a strong move lower. VIX 13.97 remains key as well. VIX is now at 13.45, at the highs today, helping bulls but less so, and the bears will be happy if VIX can move up through 13.97 which will create strong market downside. Bulls need to regain UTIL 503.04 to get their mojo back. The SPX tested 1788 this morning but bounced; the bears did not have enough juice, yet. The 1788 remains key and will create a downside market acceleration if it fails.

11/24/13; 7:00 PM EST =  

11/19/13; 1:01 PM EST = +30; signal line is +41

11/19/13; 12:41 PM EST = +46; signal line is +41 but algorithm remains short

11/19/13; 11:26 AM EST = +30; signal line is +42

11/18/13; 9:37 AM EST = +46; signal line is +42 but algorithm remains short

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

Keybot the Quant remains short. One day is stranger than the next in these historic markets. Bulls had equities delivered on a silver platter yesterday but could not convert, yet. The bulls needed to hold SPX 1802, but could not, so the algo could not latch and lock for the long side, and Keybot remains short despite the algo number above the signal line. The bulls have the markets on a silver platter again for Tuesday, only needing to punch above 1802.50, and hold this level for several minutes, and that should be enough to cause Keybot to flip long. The bears need to push about 3 points lower, under 1788, and the downside will accelerate. S&P futures are -2 about 5-1/2 hours before the U.S. opening bell. A move through 1789-1801 is sideways action for Tuesday.

UTIL 503.04 remains an important bull-bear line in the sand for this week and the bulls are solidly comfortable at 506.84. The algo is now prioritizing volatility. The VIX is 13.10 and Keybot identifies the bull-bear line in the sand at 13.97. Market bulls are okay as long as the VIX remains under 13.97. Market bears will celebrate if VIX hits 13.97 since this will usher in the market downside. The bulls need copper and commodities to run higher to create more upside equity mojo but instead these parameters continue to retreat and copper is weak again this morning. This hints that perhaps the market upside is limited from here on out. The algo is also tracking financials. Watch XLF 20.65, now at 21.12, comfortably in the bull camp, creating upside market lift.

The bulls only need SPX 1802.50+ for a few minutes and Keybot will likely flip long and further upside is ahead. A gap-up opening, which is not currently on tap looking at the futures, may delay any flip to the long side. The bears need SPX 1788, UTIL 503.04 and/or VIX 13.97 to lock in equity selling moving forward. Markets remain erratic and unstable.

11/24/13; 7:00 PM EST =  

11/18/13; 9:37 AM EST = +46; signal line is +42 but algorithm remains short

11/17/13; 7:00 PM EST = +30; signal line is +42

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

Keybot the Quant remains short moving into the new week of trading but that may change minutes after the opening bell. The bulls push UTIL above 503.04 (this number is important for all 5 days this week) which will help create market upside. The bears need to push UTIL under 503.04 or the SPX will likely move ten handles higher. If UTIL stays above 503.04, and the SPX prints above 1798.50, and holds above, Keybot will likely flip to the long side. The algo has been looking for an imminent turn to the long side for the last week and one-half but the bears have been able to ward off the threat, so far.  Early Monday morning trading after the opening bell is critical. If the S&P futures show a smidge of green overnight, the path higher is set in stone.

The bears need to keep the overnight futures negative and to send the SPX under 1791 to gain any downside mojo. A move through 1792-1798 is sideways action for Monday. The bulls are ready to verify the upside market orgy move and continued upside with UTIL 503.04 and SPX 1798.50 in the opening minutes of trading tomorrow. Keybot does not print any pre-scheduled numbers this week so the market action dictates the algo action. Last week, Keybot motored along without printing any numbers which is uncharacteristic behavior. The bears are driving the bus to begin the week but the bulls have their hands on the wheel and are ready to sit in the driver's seat.

11/24/13; 7:00 PM EST =

11/17/13; 7:00 PM EST = +30; signal line is +42

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

Keybot the Quant remains short during the 3-day rally. The algo did not print any numbers during the whole week of trading, a very odd occurrence. The SPX is now over 50 handles above where the algo entered short, again, unprecedented behavior which has never occurred in the algo's 5-year history. UTIL moves towards 507 well above the 503.04 bull-bear line in the sand for next week so the bulls are in good shape for Monday morning. Keybot should finally flip long with elevated utilities and if the SPX prints above 1800 and higher. The first one-half hour of trading on Monday is critical. The areas and levels of interest for next week can be identified once the Sunday pre-scheduled number prints tomorrow.

11/17/13; 7:00 PM EST =

11/10/13; 7:00 PM EST = +30; signal line is +42

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

Keybot the Quant remains short as equities continue floating higher. The algo is humming along all week without printing any numbers. The metrics for the algo are moving flat this week indicating an ongoing bull-bear struggle. The bears need weaker financials and/or higher volatility but neither is cooperating. The bulls need higher utilities, copper and/or commodities to verify the market upside, but copper and commodities are in the tank the last couple days. The key is likely utilities.  UTIL 508.47 remains key for today but at the closing bell this number will change to 503.04, a much easier threshold for the bulls to cross and verify the market upside (UTIL is at 503.76). The UTIL 503.04 will remain an important bull-bear line in the sand for all of next week. Watch utes closely today. If UTIL closes under 503, the bears will receive the nod come Monday morning. If UTIL prints above 503 at the closing bell, this sets up next week to be a bullish confirmation of the upside for equities. Note how the Wall Street algo's are already keying in on the UTIL 503.04 number and used it as support all day yesterday.

So the bulls need to push above UTIL 508.47 today, or 503.04 at the closing bell, to likely cause Keybot to flip long. Bears need XLF 20.50 and/or VIX 14.06 to lock in downside selling. For the SPX starting at new all-time highs at 1791, the bulls only need to touch the 1792 handle and the upside party continues with a move to 1800 on tap. The bears need to push under 1780 to gain downside mojo.  A move through 1781-1790 is sideways action. S&P futures are +2 about 4-1/2 hours ahead of the opening bell favoring the bulls.

11/17/13; 7:00 PM EST =

11/10/13; 7:00 PM EST = +30; signal line is +42

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

Keybot the Quant remains short. One day is stranger than the next. The SPX performs a melt-up this afternoon printing new highs but the algo motors along another day without printing any numbers. The SPX is now 36 points above where Keybot entered short, an unprecedented spread. In the 4+ years for the algo, there are only two times where the algo printed 30 to 32 points in the opposite direction. This is special market behavior currently and something has to give one way or the other, perhaps tomorrow. Of further interest is how copper collapsed today but it did not help the bears. Utilities are weak as well so the areas the bulls need to verify the upside path, copper, commodities and utilities, are all weak. At the same time, the bears could not gain any traction after the opening bell this morning since financials and volatility would not cooperate.

Watch UTIL 508.47, JJC 40.04, XLF 20.47 and VIX 14.10. Bulls need utes and copper. Bears need financials and volatility. If all 4 parameters remain in their respective camps, markets will move sideways although new all-time highs are printed today as these current key parameters refuse to budge. For the SPX for Thursday, that closed at the high at 1782, the bulls only need to see a smidge of green in the overnight futures and an upside acceleration is on tap into the mid-1780's. The bears need to keep the futures negative to stop the bleeding and after the SPX opens tomorrow, push price under 1761 to develop downside mojo, a formidable task. A move through 1762-1782 is sideways action. If utilities or copper turn bullish, and the SPX prints above 1782 and stays above, Keybot will likely flip long. The market action is the most bazaar of any action seen over the years for the algo. It will be interesting to see how it plays out. For now, the bears continue to drive the bus even though equities keep floating higher.

11/17/13; 7:00 PM EST =

11/10/13; 7:00 PM EST = +30; signal line is +42

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

Keybot the Quant remains bearish as markets continue to stumble sideways. Yesterday the utilities and copper sectors kept a lid on the market upside. Today markets drift lower but cannot accelerate lower without the bears receiving either lower financials or higher volatility. Thus, bulls need either UTIL 508.47 or JJC 40.15. Bears need either XLF 20.47 or VIX 14.13. The drop in utes opens up the possibility for UTIL triggering the market trap-door at UTIL 488.00 so keep an eye on this number. If all the parameters above remain as is, then markets continue the sideways dance. Any change to any parameter sends markets in that direction. Watch financials closely; XLF 20.47.

For the SPX starting at 1768, the bulls need to touch the 1772 handle and the upside acceleration will occur. The bears need to push under 1762.50 to accelerate the downside.  A move through 1763-1771 is sideways action. If UTIL moves above 508.47, or JJC above 40.15, and the SPX above 1772, and stays above, Keybot will likely flip long. For now, the bears remain in control but the markets stagger sideways. The algo is idling along without printing any numbers this week thus far.

11/17/13; 7:00 PM EST =

11/10/13; 7:00 PM EST = +30; signal line is +42

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

Keybot the Quant remains bearish and the week begins with a leisurely sideways Veteran's Day of trading. The algo motored along without printing any numbers today. UTIL stays under 408.47 and JJC stays under 40.19 so the markets stagger sideways. The SPX punches above 1773 but ran out of gas since utilities and copper remain in the bear camp. Same dealio for tomorrow. Bulls must go through utilities and/or copper to move equities higher.

For the SPX starting at 1772, the bulls only need 1-1/2 point, to punch up through 1773.50, and the move towards 1780 begins in quick order. The bears need to push under 1768 to accelerate the downside. A move through 1769-1773 is sideways action. If UTIL moves above 508.47 or JJC above 20.19, only 1 of these 2 parameters would be needed, and the SPX moves above 1773.50, and stays above, Keybot will likely flip long. The bears are driving the bus but they continue driving the wrong way down a one-way street.

11/17/13; 7:00 PM EST =

11/10/13; 7:00 PM EST = +30; signal line is +42

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

Keybot the Quant is short moving into the new week of trading. The markets remain a coin-flip. Watch UTIL 508.47, 487.90, JJC 40.20 and SOX 492.85. The algo considers these parameters the most influential on market direction currently. UTIL begins at 502.46 under the 508.47 which is great for market bears, but above the 487.90 that keeps the bulls in play. The UTIL 487.90 represents a trap-door for markets so pay attention to this moving forward. If the bulls push above 508 it will surely signal a few days of market upside. JJC is 39.95 causing market negativity so watch copper trading overnight to see if this yellow metal is weak, or not. SOX is at 501 to begin the week, on the bull side, but would cause market trouble below 493.

For the SPX starting at the highs at 1771, the bulls only need to see a smidge of positivity in the futures and it is blue skies above for more market upside; the SPX will be on the way to new all-time highs marching towards 1780. The bears need to keep the futures negative overnight and retrace Friday's move to the downside, a formidable task but not impossible. Just look at how the bulls reversed Thursday's down move. The tell is with UTIL 508.47 and JJC 40.20. The bulls need one or both of these to verify continued upside. If either of these 2 parameters turn bullish, and the SPX prints above 1771 and higher, and remain elevated, Keybot will likely flip long. If the markets bounce higher on Monday, but UTIL and JJC do not cooperate on the bull side, equities will likely reverse and drop lower again. A move through SPX 1748-1771 is sideways action for Monday. Keybot does not print any pre-scheduled numbers this week which makes the utilities, copper and semiconductor sectors that much more important as well as financials and volatility. Markets should make a more firm directional commitment this week.

11/17/13; 7:00 PM EST =

11/10/13; 7:00 PM EST = +30; signal line is +42

11/8/13; 10:00 AM EST = +30; signal line is +43

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

Keybot the Quant remains short through the weekend. The bull-bear fight continues with markets unable to firmly commit to one side or the other. The bears are creating a ceiling on the market upside with weak utilities, copper and commodities. The bulls keep fighting to push markets higher with financials, semiconductors and continued low volatility. The stronger financials, with XLF exploding higher avoiding the 20.39 bull-bear danger line, create the market lift yesterday. The VIX was also crushed lower to create market lift. Something has to break and likely will next week. UTIL closes at 502.46 six points under the 508.47 the bulls need to create more equity upside. Markets are a toss-up as evidenced by a large down day on Thursday and then a complete recovery Friday. The algo continues to favor the bear side, for now. Next week's areas and levels of importance can be identified once the algo prints the pre-scheduled Sunday number tomorrow.

11/10/13; 7:00 PM EST =

11/8/13; 10:00 AM EST = +30; signal line is +43

11/8/13; 9:00 AM EST = +30; signal line is +43

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

Keybot the Quant remains short as the Friday trading is underway. The two pre-scheduled numbers this morning result in only a one tick change in the signal line. Utilities collapse due to higher yields. UTIL loses the 5 hundo level now with a 494 handle. The UTIL 488-ish level is another bull-bear danger line, a trap-door for equities moving forward, so keep this in mind. XLF is 20.63 so the bulls save the day so far bouncing off the 20.39 danger line. VIX is 13.70 remaining in the bull camp. Thus, UTIL remains bearish and XLF and VIX bullish so equities stumble sideways. The imminent turn status remains since the algo number and signal line are in close proximity to each other, however, bulls have a long way to go needing to push far higher above 1775 to regain their mojo.  Thus, the stock market may simply stagger sideways into the weekend.

11/10/13; 7:00 PM EST =

11/8/13; 10:00 AM EST = +30; signal line is +43

11/8/13; 9:00 AM EST = +30; signal line is +43

11/7/13; 3:32 PM EST = +30; signal line is +44

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

Keybot the Quant remains short as the markets experience a strong sell off in Thursday trading. Note that Keybot was actually on the verge of flipping long in the afternoon (the algo would not allow the trend change since internal programming rules would not line up properly). The SPX is now back down to where the algo initiated the short position at 1746-1747 two weeks ago and the XLF (financials) drop to 20.39 directly on top of the 20.39-20.40 line in the sand identified by Keybot. It is amazing how the algo identifies these numbers before they occur. Lots of drama remains in the markets and the imminent turn status is in place since equities can continue to go either way. Equities remain a coin-toss.

Watch UTIL 504.41 today but at the closing bell 508.47 becomes the new line in the sand for all of next week. Utilities are causing bearishness under 504.41 and will cause bearishness next week under 508.47. Pay attention to the closing print for UTIL today. XLF is directly on top of the 20.39 bull-bear line in the sand and whichever way it moves, the broad indexes will follow. Watch VIX 14.32, now at 13.91 causing bullishness. Watch SOX 492.85, now at 495.20 causing bullishness. Watch JJC 40.18, now at 39.69 causing bearishness. Ay change to any of these 5 parameters will cause markets to move in that respective direction. XLF 20.39 and UTIL 504.41 are the two top tier parameters as identified by Keybot. If UTIL moves above 504.41, and the SPX moves above 1775, and both remain above, a formidable task but not impossible, Keybot will likely flip long.

For the SPX at 1747, the bulls need to move above 1774.50 to regain the upside mojo. The bears need to push under 1746 to accelerate the downside. A move through 1747-1774 is sideways action. The algo prints a pre-scheduled number today before the opening bell. S&P futures are +5 about 4-1/2 hours before the opening bell.

11/8/13; 9:00 AM EST =

11/7/13; 3:32 PM EST = +30; signal line is +44

11/7/13; 2:40 PM EST = +46; signal line is +44 but algorithm remains short

11/7/13; 1:51 PM EST = +30; signal line is +45

11/6/13; 9:54 AM EST = +46; signal line is +47

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

Keybot the Quant remains bearish as the odd market behavior continues this week. The bulls launch the utilities sector yesterday with UTIL jumping to 508.28, well above the 504.41 bull-bear line, creating the lift in equities yesterday. The key bull-bear line in the sand for next week for utilities is 508.47 so the bulls are already trying to position the utilities to maintain an elevated stock market moving forward. UTIL 508.47 is very important moving into the closing bell tomorrow (Friday) since it will provide a heads-up for Monday.

Watch UTIL 504.41 (now causing bullishness), JJC 40.18 (now causing bearishness) and XLF 20.40 (now causing bullishness). Copper collapsed -2% yesterday with JJC dropping to 39.72. So the bulls wave the utility banner and the bears wave the copper banner and markets stagger sideways still unwilling to make a directional decision. Bears win with UTIL 504.41 and/or XLF 20.40. Bulls win with JJC 40.18. If the 3 parameters remain status quo, markets continue to drift sideways.

For the SPX starting at 1770, the bulls need to touch the 1774 handle and new all-time highs will be printing in quick order with the SPX on the way to the 1780 handle. The bears need to push under 1764.50 to accelerate the downside. A move through 1765-1773 is sideways action. S&P futures are -3 about 5 hours before the opening bell. Markets are a coin-flip as evidenced by the algo number and signal line flat in-line with each other. Utilities, copper and financials will identify the winner. 

11/8/13; 9:00 AM EST =

11/6/13; 9:54 AM EST = +46; signal line is +47

11/5/13; 2:02 PM EST = +30; signal line is +47

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

Keybot the Quant remains short but the algo number is now only one single point from the signal line. The bulls are pumping utilities today to gain upside juice. UTIL is above 504.41. JJC remains under 40.22 helping bears. XLF is above 20.39 helping bulls. The SPX jumps up through the all-time closing high at 1772. HOD 1773.74. The algo remains bearish so this is very interesting market action. The bulls may try to jog UTIL lower, under 504.41, then back above to reset the upside move and provide additional upside juice, or, simply gain the upside strength with higher copper (JJC over 40.22). Bears need to push UTIL under 504.41 and keep it under. A turn to the long side may be imminent, for now, the bears are hanging on by a thread.

11/8/13; 9:00 AM EST =

11/6/13; 9:54 AM EST = +46; signal line is +47

11/5/13; 2:02 PM EST = +30; signal line is +47

STOCK MARKET BEARISH -- SHORT -- CAUTION

Keybot the Quant remains short through the wild sideways action the last few days. UTIL is below 504.41 causing bearishness. JJC is under  40.22 causing bearishness. XLF is above 20.39 causing bullishness. Bears need XLF under 20.39 to kick the market downside into gear. Bulls need either UTIL 504.41 and/or JJC 40.22 to continue pushing markets higher and if one of these flip long, and the SPX moves above 1767, Keybot may flip to the long side. So another day of drama is on tap for Wednesday.

For the SPX starting at 1763, the bulls need to move above 1767 to accelerate the upside to test 1769 and 1772. The bears need to push under 1756 to accelerate the downside to 1752 in quick order. A move through 1757-1766 is sideways action. If either UTIL or JJC turn bullish, as described above, consider a turn to be imminent for the algo. If XLF fails, is is smooth sailing lower for bears.

11/8/13; 9:00 AM EST =

11/5/13; 2:02 PM EST = +30; signal line is +47

11/5/13; 10:25 AM EST = +46; signal line is +48

STOCK MARKET BEARISH -- SHORT -- CAUTION

Keybot the Quant remains bearish as the Tuesday session motors along. UTIL drops under 504.41, but then regains this key level helping the SPX recover off earlier lows. Copper remains in the bear camp with JJC under 40.20. Thus, status quo. Keep watching UTIL 504.41 and JJC 40.20 to determine market direction. The algo is now tracking financials. XLF 20.39 is the key bull-bear level identified by Keybot. The XLF is 20.57 with a LOD at 20.49 only a dime away from causing a big leg down in equities. Watch these three parameters since they are the key drivers of equity direction currently. The SPX fell through 1762 so it accelerated lower to a LOD at 1755.56. SPX has recovered to 1764.34 and will take its cue off UTIL 504.41, JJC 40.20 and XLF 20.39. The sideways nature of markets is verified by the algo number and signal line only 2 ticks apart. The imminent turn status notation is removed but would be in immediate affect again if JJC moves above 40.20. Markets move sideways with neither side wanting the ball.

11/8/13; 9:00 AM EST =

11/5/13; 10:25 AM EST = +46; signal line is +48

11/5/13; 9:37 AM EST = +30; signal line is +48

11/4/13; 12:52 PM EST = +46; signal line is +49

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

Keybot the Quant remains short as equities float higher. The bulls pull UTIL above 504.41 into their camp which creates this afternoon's buoyancy. Copper and commodities remain weak. Tomorrow is a battle between copper and utes and the winner sends the market in the same respective direction. Bears need to push UTIL below 504.41 pronto to move the broad indexes lower. Bulls need JJC above 40.20 and it will be wine and rainbows for the bulls moving markets higher. If JJC moves above 40.20 in Tuesday's trade, and the SPX moves above 1769, and both stay above, along with utes remaining elevated, Keybot will likely flip to the long side, hence the imminent turn message is in the title line. The algo number is only 3 points from the signal line. Bulls and bears are fighting it out and a decision needs to be made. Watch copper in overnight trading; if negative, the bears are fine; if positive, the bulls will be poised to run the markets higher tomorrow and flip Keybot long.

For the SPX starting at 1768, the bulls need one point, to touch the 1769 handle, and another upside acceleration is on tap. Watch the S&P futures overnight since any positivity will set up another happy bull day for Tuesday. The bears need to push under 1762 to accelerate the downside. A move through 1763-1768 is sideways action.

11/8/13; 9:00 AM EST =

11/4/13; 12:52 PM EST = +46; signal line is +49

11/4/13; 9:49 AM EST = +30; signal line is +50

STOCK MARKET BEARISH -- SHORT -- CAUTION

Keybot the Quant remains short as the new week of trading is underway. Both UTIL and JJC drop under their respective bull-bear lines in the sand at 504.41 and 40.20, respectively, so this will limit any market upside. The SPX touched 1766 and jumped to near 1768 but the bulls need stronger utilities and copper to make headway higher.  The bears are driving the bus although they may be moving down a wrong way street (market bears remain in charge despite the markets floating higher). UTIL 504.41 and JJC 40.20 tell a lot.

11/8/13; 9:00 AM EST =

11/4/13; 9:49 AM EST = +30; signal line is +50

11/4/13; 9:37 AM EST = +46; signal line is +52

11/3/13; 7:00 PM EST = +46; signal line is +53

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

Keybot the Quant is short to begin the new week of trading. Utilities and copper are in command to begin trading. Bulls need to keep UTIL above 504.41 and JJC above 40.20 to keep floating equity markets higher. If UTIL and JJC remain above their respective bull-bear lines in the sand, and the SPX moves above 1766, and all stay above, Keybot will likely flip to the long side, hence the imminent turn status. Copper is weak in early trading.

For the SPX starting at 1762, the bulls need to touch the 1766 handle to unleash an upside acceleration to the 1770+ handle. The bears need to push under 1753 to accelerate the market selling. A move through 1754-1765 is sideways action today. S&P futures are +3 about 5-1/2 hours before the opening bell which would set up a test at the 1765-1766 level. The market bears will continue driving the bus if UTIL and/or JJC drops under the levels listed above. Keybot prints two pre-scheduled numbers this week both on Friday morning.

11/10/13; 7:00 PM EST =

11/8/13; 10:00 AM EST =

11/8/13; 9:00 AM EST =

11/3/13; 7:00 PM EST = +46; signal line is +53

10/31/13; 7:00 PM EST EOM = +46; signal line is +54

STOCK MARKET BEARISH -- SHORT -- CAUTION

Keybot the Quant remains short through the weekend. The algo motors along Friday without any of the 4 key parameters mentioned previously changing their stripes, thus, the markets stagger sideways. Note how UTIL used 506.22 as a resistance ceiling all day long and then honed in on the 504.41 (an important bull-bear line in the sand for all of next week) into the closing bell ending at 504.65. It is amazing how Keybot identifies these numbers ahead of time. This provides the bulls a slight advantage come Monday morning--as long as UTIL stays above 504.41. This number is not too much of a mystery. You always want to watch the UTIL weekly closing print from 15-weeks ago and for next week this number is 504.41. Most algo's and robots have it programmed, and the late-day action shows you that the computers rule the markets.

Copper moves flat with JJC above 40.20 so this maintains market buoyancy. The sectors and other areas of interest for next week, and price levels, can be identified once the Sunday pre-scheduled number prints tomorrow. Bears need UTIL under 504.41 and/or JJC under 40.20 on Monday, otherwise, the bulls are going to take the ball back.

11/3/13; 7:00 PM EST =

10/31/13; 7:00 PM EST EOM = +46; signal line is +54

10/30/13; 1:17 PM EST = +46; signal line is +54

STOCK MARKET BEARISH -- SHORT -- CAUTION

Keybot the Quant remains short. The algo is tracking 4 parameters most affecting market direction currently; utilities, commodities, copper and volatility. The bulls need UTIL 506.22 today to send markets higher. At 4 PM, this number clicks to 504.41, an easier threshold for bulls to cross, and this UTIL 504.41 number will be important for every day next week. If UTIL closes above 504.41 today, the markets are set up for bullish buoyancy come Monday morning. If UTIL finishes under 504.41, it is a win for market bears moving forward. The bulls also need GTX above 4874 to send equities higher. If UTIL moves above 506.22 today, or GTX above 4874, and the SPX moves above 1768.50 and stays above, Keybot will likely flip long.

The bears need to either push JJC under 40.20 or volatility above 14.60 to lock in a downward path for equities. Copper is higher in early trading. For the SPX starting at 1757, the bulls need to move above 1768.50 to accelerate the upside. The bears need to push under 1756 to accelerate the downside which should occur if the S&P futures are one point negative, however, S&P futures are +2 at this writing about 4-1/2 hours before the opening bell. A move through 1757-1768 is sideways action. Watch the 4 parameters above (UTIL 506.22, GTX 4874, JJC 40.20, VIX 14.60) since any change will dictate market direction. The EOM pre-scheduled number results in no changes to the algo number or signal line number.

11/3/13; 7:00 PM EST =

10/31/13; 7:00 PM EST EOM = +46; signal line is +54

10/30/13; 1:17 PM EST = +46; signal line is +54