STOCK MARKET BEARISH -- SHORT -- CAUTION

Keybot the Quant remains short. The algo was active yesterday afternoon. Note how the bulls are trying to close the distance between the algo number and the signal line. Utilities provided the drama yesterday. Continue watching 494.90 and 496.05. Bulls need UTIL 494.90 to create a recovery rally. Bulls sent GTX above 4779 to create buoyancy late day yesterday so watch this number closely. Bears need to push GTX under 4779.

For the SPX starting at 1774, the bulls need to push above 1790 to create an upside acceleration to 1796 in a heartbeat. S&P futures are pointing to a gain of about 13 points at the opening bell. The bears need to push under 1770.50 to accelerate the downside. A move through 1771-1789 is sideways action. If the bulls can push utilities above the two levels listed above, and the SPX moves above 1790, and all remain above, Keybot may flip to the long side. The caution flag is out.

1/31/14; 10:00 AM EST =

1/29/14; 3:13 PM EST = -16; signal line is +13

1/29/14; 2:35 PM EST = +0; signal line is +16

1/29/14; 2:23 PM EST = -16; signal line is +17

1/29/14; 2:05 PM EST = -30; signal line is +20

1/29/14; 1:05 PM EST = -14; signal line is +25

1/29/14; 12:44 PM EST = +2; signal line is +25

1/28/14; 2:40 PM EST = -14; signal line is +26