STOCK MARKET BEARISH -- SHORT -- CAUTION

Keybot the Quant remains short after another roller coaster day. The retail sector is driving the stock market right now. Watch RTH 59.61. Price dropped under yesterday which ushered in the market selling then the bulls pushed RTH above to close at 59.72 which created the recovery into the closing bell. So bears need RTH under 59.61 and bulls must maintain RTH above 59.61. Bears will also seek GTX 4870 to gain downside fuel. Bulls will seek VIX 14.39 to create a very strong recovery rally and place the algorithm on imminent turn status. If VIX drops under 14.39, and the SPX moves above 1873, and both remain bullish, Keybot will likely flip long. The SPX needs to gain 16 handles today to help the bulls; in these markets anything can happen.

For the SPX starting at 1857, now down for the month of March, the bulls need to push above 1873 to accelerate the upside for another attack at the all-time highs. The bears need to push under 1850 to accelerate the downside. The 1848-1852 is a strong support gauntlet where price bounced yesterday. A failure of 1850 will likely lead to far lower numbers on the SPX going forward. A move through 1851-1872 is sideways action for Tuesday. Keybot prints a pre-scheduled number at 10 AM. Bears continue to drive the bus but markets remain a toss-up. RTH 59.61 provides the answer.

3/28/14; 10:00 AM EST =

3/25/14; 10:00 AM EST =

3/24/14; 1:34 PM EST = +48; signal line is +52

3/24/14; 11:31 AM EST = +32; signal line is +52