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

Keybot the Quant remains short after another wild day of action. The algorithm prints 11 numbers in the Wednesday session a very active day. Keybot is champing at the bit to go long right now; the algo number is one point above the signal line, however, the internal parameters are not fully latched to permit the move. One thing the algo likely wants to see is SPX 2012 and if this occurs, Keybot will likely flip long. SPX above 2012 will verify that a recovery rally has begun and will continue. Bulls will celebrate if RTH moves above 76.38.

The bears need weaker utilities, otherwise, they are in trouble since the algo is already a hair away from flipping long. Bears must push UTIL under 579.02 after the opening bell to stop the market upside and resume the downside for equities. If UTIL loses the 572.36 level, a trap-door will open and the stock market will drop into free fall.

For the SPX for Thursday starting at 1990, the bulls need to touch 2012 and bingo, price will accelerate towards 2020. The bears need to push under 1979 to accelerate the downside. A move through 1980-2011 is sideways action for Thursday.

If the SPX moves above 2012, Keybot will likely flip long and perhaps sooner. The turn to the loing side is imminent and likely on Thursday unless you see the utilities sector dropping from the get-go.

1/10/16; 7:00 PM EST =

1/8/16; 9:00 AM EST =

1/6/16; 3:18 PM EST = -24; signal line is -25 but algorithm remains short

1/6/16; 3:03 PM EST = -40; signal line is -22

1/6/16; 12:14 PM EST = -24; signal line is -19

1/6/16; 12:05 PM EST = -24; signal line is -18

1/6/16; 11:26 AM EST = -8; signal line is -16 but algorithm remains short

1/6/16; 11:15 AM EST = -24; signal line is -13

1/6/16; 10:40 AM EST = -40; signal line is -11

1/6/16; 10:39 AM EST = -24; signal line is -8

1/6/16; 10:27 AM EST = -8; signal line is -6

1/6/16; 10:14 AM EST = -24; signal line is -4

1/6/16; 9:36 AM EST = -40; signal line is -3

1/5/16; 1:47 PM EST = -8; signal line is -1