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

Keybot the Quant remains short as the market antics continue. Utilities explode higher which makes for happy bulls. UTIL is at 498.21 well above the 494.55 danger line so the bulls have a large feather in their caps. Copper gains strength as the day played out. The VIX moves higher but remains under the 13.65 level the bears need to create negativity. Keybot wants to go long right now, all day in fact, but is held back since the numbers cannot yet latch properly. If the SPX moves above 1849.31 in the Wednesday session, and remains above, Keybot will likely flip long. If a gap-up occurs, however, a timer will likely kick in that would prohibit the move to the long side for about 90 minutes.

The bears need to push either UTIL under 494.55, JJC under 40.50 and/or VIX above 13.65, to create market negativity and push equities lower. Considering that the bulls only need about five SPX points after the opening bell to flip the algo long, the market bears better come to play and push utes and copper lower, and volatility higher, otherwise, the bears will fold like a cheap suit and the bulls will create new all-time highs for the SPX.

For the SPX starting at 1844, the bulls need to push above 1849 and an upside acceleration will occur, driving up through the all-time high at 1851 like a hot knife through butter and moving well into the mid and upper 1850's. The bears need to push under 1832 to accelerate the downside. A move through 1833-1848 is sideways action. The bears continue to drive the bus but the bulls have their hands on the steering wheel as well and the vehicle is careening out of control down the boulevard. Wednesday is a big day. Either the bulls print SPX 1849 and higher to lock in a few upside days ahead and new all-time highs, and Keybot to flip long, or, the bears come to play and attain at least one of the three ute, copper and/or volatility numbers listed above to initiate the beginning of a strong move lower for equities. Which side will eat their Wheaties?

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

1/21/14; 9:38 AM EST = +48; signal line is +42 but algorithm remains short

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