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

Keybot the Quant remains short through the holiday weekend. Markets reopen for trading on Tuesday morning. The algo says the bears are driving the bus but the broad markets remain elevated refusing to yield. Utilities, copper and volatility will tell the tale to begin the week. Watch UTIL 491.68 and 494.12. Bulls win above 494.12. Bears win below 491.68. In between, like now with price starting the week at 492.70, and markets are unable to choose a winner. UTIL will choose a side and this will send the broad indexes in the same respective direction. In addition, the bears can receive downside juice with either JJC under 40.42 and/or VIX above 13.83. Bulls can return to easy street with UTIL 494.12.

For the SPX starting at 1839, the bulls need to push above 1846 and the upside will accelerate to test the all-time high at 1851 in a heartbeat. The bears need to push under 1835 to accelerate the downside. A move through 1836-1845 is sideways action. If UTIL moves above 494.12, and the SPX moves above 1846, and both remain above, Keybot will likely flip long. The bears will accelerate the downside with UTIL 491.68, JJC 40.42 and/or VIX 13.83. Keybot does not print any pre-scheduled numbers this week.

1/26/14; 7:00 PM EST =

1/19/14; 7:00 PM EST = +32; signal line is +42

1/17/14; 10:00 AM EST = +32; signal line is +42