STOCK MARKET BEARISH -- SHORT -- CAUTION

Keybot the Quant remains short as the week is well underway with Wednesday trading ahead. UTIL lost its critical 50-week MA at 584.66 which ushers in market weakness but the bulls boost commodities and financials, and push volatility lower, to save the day. Broad market direction is currently a fight between utilities and retail stocks, supporting the bears, and financials and volatility, supporting the bulls.

Bears need either VIX above 14.42 (now at 14.24) and/or XLF under 24.50 (now at 24.66) to create downside market mayhem. The market bulls need to push either UTIL above 584.66 (now at 580.12) and/or RTH above 76.23 (now at 75.73). One of these four characters will flinch and dictate the stock market direction. If all four stay in their respective camps, markets stagger sideways with a slight upward bias. If UTIL or RTH turn bullish, either one would do, and the SPX moves above 2118, Keybot will likely flip long.

For the SPX starting at 2110, the bulls need to touch the 2118 handle and bingo, price will quickly run up into the 2120's. The bears need to push under 2099 to accelerate the downside to 2091 in a heartbeat. A move through 2100-2117 is sideways action for Wednesday.

6/7/15; 7:00 PM EST =

6/5/15; 9:00 AM EST =

6/2/15; 10:43 AM EST = +28; signal line is +36

6/2/15; 10:29 AM EST = +14; signal line is +37

6/2/15; 10:10 AM EST = +0; signal line is +39

6/2/15; 9:36 AM EST = +14; signal line is +41

6/1/15; 12:08 PM EST = +30; signal line is +43

6/1/15; 11:35 AM EST = +16; signal line is +43

6/1/15; 11:04 AM EST = +30; signal line is +45

6/1/15; 10:18 AM EST = +16; signal line is +46

6/1/15; 10:07 AM EST = +30; signal line is +48

6/1/15; 9:54 AM EST = +16; signal line is +49

5/31/15; 7:00 PM EST EOM = +30; signal line is +51