STOCK MARKET BEARISH -- SHORT -- CAUTION

Keybot the Quant remains short. Note how the financials, XLF, came up to kiss the 24.60 level but the bulls did not have the juice to take it higher so the upside stalled for the broad stock market. Is is amazing that the Keybot algorithm can call these levels out before they occur; an astounding feat. In the afternoon, the bulls pushed commodities higher and that kept stocks buoyant through the closing bell.

For Wednesday, the battle is between the NYA Index, XLF (financials) and GTX (commodities). Bulls need either NYA above 10895 and/or XLF above 24.60 to receive upside energy in the stock market. The caution flag is out since either of these two parameters turning bullish will indicate more upside ahead for stocks. If both turn bullish, consider the imminent turn to be in play and Keybot will likely flip to the long side. The bears need to push GTX under 3217 to receive juice to push stocks lower. GTX begins at 3226 only 9 points above.

For the SPX starting at 2063, the bulls need to push above 2074 which will create a strong upside acceleration into the 2080's. The bears need to push under 2056 to accelerate the downside towards 2044. A move through 2057-2073 is sideways action.

7/2/15; 9:00 AM EST =

6/30/15; 7:00 PM EST; EOM; EOQ2; EOH1 = -24; signal line is +7

6/30/15; 2:02 PM EST = -24; signal line is +8

6/30/15; 10:00 AM EST = -38; signal line is +9

6/29/15; 11:07 AM EST = -41; signal line is +10