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

Keybot the Quant is on the short side but markets are a coin-flip each day continuing the erratic choppy sideways action. The bulls push semiconductors and the NYA Index higher in the afternoon but then both roll over and fall on their sword. For Wednesday, watch NYA 10812, SOX 673.82 and VIX 16.04. All three are in the bear camp so if any one of the parameters turn bullish, stocks will be running strongly higher and the upside fuel will be proportional to how many of the  three parameters turn bullish.

If the stock market rallies strongly and only one of the three parameters turn bullish and the SPX prints above 2048, Keybot will likely flip long. Thus, the imminent turn notation is shown in the title line. If stocks rally and one or more of the parameters turn bullish but the SPX remains under 2048, stocks will probably lose the gains and the parameters should revert back to the bear camp. Above SPX 2048 and the bulls are probably in clover.

For the SPX starting at 2030, the bulls need to touch the 2048 handle and bingo, the upside will accelerate well into the 2050's. The bears need to push under 2020 to accelerate the downside to 2010-2011. A move through 2021-2047 is sideways action. Markets are very unstable. The bears are in control, barely, with the stock market staggering sideways unable to choose up or down. Perhaps in the afternoon after the FOMC announcement, stocks may commit to a direction forward. The three parameters above will tell you the strength of any upside move.

1/30/15; 10:00 AM EST =

1/27/15; 3:02 PM EST = +10; signal line is +23

1/27/15; 3:01 PM EST = +24; signal line is +23 but algorithm remains short

1/27/15; 2:27 PM EST = +40; signal line is +22 but algorithm remains short

1/27/15; 2:25 PM EST = +24; signal line is +21 but algorithm remains short

1/27/15; 10:00 AM EST = +10; signal line is +21