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

Keybot the Quant remains short through the weekend. The algo is primarily tracking financials, retail and semiconductors as the main drives of market direction currently. Bulls will verify the upward path for equities with RTH 58.66 and/or XLF 21.85. If either one turns bullish, and the SPX moves any amount higher above 1878, and both remain above these levels, Keybot will likely flip back to the long side. If equities run higher but retail or financials do not reach the levels shown, then the bulls got nothing and the move higher will fade. The bears need weaker semiconductors with SOX 570 (now at 576 creating bullishness in markets) to create more downside market juice.

For the SPX starting the week at 1878, closing at the highs from Friday's late-day rally, the bulls only need a tiny smidge of green to show in overnight futures and the path higher will continue with the SPX gaining several more handles; price will move into the mid 1880's. The bears must keep the overnight futures negative or they will be in trouble from the start. The bears need to push the SPX under 1865 to accelerate the downside. A move through 1866-1877 is sideways action for Monday. Keybot does not print any pre-scheduled numbers this week. The bears are driving but the bulls want the wheel back so the imminent turn warning is in place. Watch XLF 21.85. Listen for any positive, or negative, comments concerning the banks.

5/25/14; 7:00 PM EST =

5/18/14; 7:00 PM EST = +48; signal line is +52

5/16/14; 10:00 AM EST = +48; signal line is +52