STOCK MARKET BULLISH -- LONG -- CAUTION

Keybot the Quant flips to the long side at SPX 1633. The utilities are running higher providing the bulls with the upper hand. Copper remains weak. The algo program gains +1.7% on the last move and the actual trading gains +3% on the market down move. Keybot flips from SDS into SSO. Stay alert for a whipsaw either today or Monday especially in these erratic and volatile markets.

6/9/13; 7:00 PM EST =

6/7/13; 10:02 AM EST = +36; signal line is +30; go long 1633; (Benchmark SPX for 2013 = +14.5%)(Keybot this trade = +1.7%; Keybot for 2013 = +8.5%)(Actual this trade = +3.0%; Actual for 2013 = +8.5%)

6/7/13; 9:00 AM EST = +36; signal line is +30 but algorithm says stay short

6/5/13; 2:26 PM EST = +36; signal line is +31 but algorithm says stay short

6/5/13; 1:06 PM EST = +20; signal line is +31

6/5/13; 12:18 PM EST = +4; signal line is +32

6/5/13; 9:34 AM EST = +20; signal line is +33

6/5/13; 9:30 AM EST = +4; signal line is +34

6/4/13; 11:21 AM EST = +20; signal line is +35

6/4/13; 10:58 AM EST = +36; signal line is +37

6/4/13; 9:31 AM EST = +20; signal line is +37

6/4/13; 9:30 AM EST = +36; signal line is +38

6/4/13; 3:27 PM EST = +52; signal line is +38 but algorithm says stay short

6/4/13; 1:28 PM EST = +36; signal line is +38

6/4/13; 12:41 PM EST = +52; signal line is +38 but algorithm says stay short

6/4/13; 12:04 PM EST = +36; signal line is +37

6/4/13; 9:37 AM EST = +52; signal line is +38 but algorithm says stay short

6/3/13; 10:08 AM EST = +36; signal line is +37

6/3/13; 10:02 AM EST = +20; signal line is +37

6/3/13; 9:36 AM EST = +4; signal line is +38

6/3/13; 9:31 AM EST = +20; signal line is +39

6/2/13; 7:00 PM EST EOM = +36; signal line is +40

5/31/13; 10:00 AM EST = +36; signal line is +41

5/28/13; 10:00 AM EST = +33; signal line is +42

5/26/13; 7:00 PM EST = +32; signal line is +42

5/23/13; 9:45 AM EST = +32; signal line is +44

5/23/13; 9:30 AM EST = +0; signal line is +44

5/22/13; 3:58 PM EST = +48; signal line is +46 but algorithm says stay short

5/22/13; 2:12 PM EST = +32; signal line is +46; go short 1661; (Benchmark SPX for 2013 = +16.5%)(Keybot this trade = +5.9%; Keybot for 2013 = +6.8%)(Actual this trade = +5.0%; Actual for 2013 = +5.5%)

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

Keybot the Quant is bearish but is all set to flip long at the opening bell. If UTIL drops under 480.83 that would change the picture and allow the bears to maintain control. If there is a gap up open, Keybot may delay the potential move to the long side to 11 AM. S&P futures are +9 so it is looking good for a flip to the long side.

6/9/13; 7:00 PM EST =

6/7/13; 9:00 AM EST = +36; signal line is +30 but algorithm says stay short

6/5/13; 2:26 PM EST = +36; signal line is +31 but algorithm says stay short

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

Keybot the Quant is short moving into the Friday session. The algo wants to flip to the long side at the opening bell today. The two key market influences right now are utilities and copper. Watch UTIL 480.83 and 477.91. In addition, UTIL 481.39 is important at the closing bell at 4 PM EST today as well as all next week. UTIL is above 480.83 and 477.91 so this creates the bullishness in markets yesterday afternoon and perhaps today. The bears need to push UTIL lower immediately or Keybot will flip long. Watch JJC 41.38. Price is below so this helps the bears create market negativity. If the bulls move JJC above 41.38, it is smooth sailing higher with a recovery rally on tap.

For the SPX closing at the highs at 1622.56, the bulls only need to see a smidge of positivity in the futures ahead of the opening bell and Keybot should flip long. If there is a large gap up at the open of 10 to 12 SPX points or more, Keybot may delay flipping long until around 11 AM EST. The bears need to push under 1599 to accelerate the downside. A move through 1600-1621 is sideways action today. A pre-scheduled number prints ahead of the opening bell. Updates will be provided this morning but from mid-morning on, the updates will likely wait until the weekend.

6/7/13; 9:00 AM EST =

6/5/13; 2:26 PM EST = +36; signal line is +31 but algorithm says stay short

6/5/13; 1:06 PM EST = +20; signal line is +31

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

Keybot the Quant remains short but the algo wants to flip long.  Other internal programming rules are not yet aligned to trigger the move.  One key item that needs to occur is the SPX needs to move above 1629 today to trigger the long side. SPX is now printing 1615. Utilities recovered with UTIL at 481.11 above both the 477.91 and 480.83 critical levels. If UTIL falls under 480.83, the upside will evaporate and the selling will increase into the closing bell. If UTIL remains elevated above 480.83, the broad indexes will float higher into the close. The imminent turn notation is added to the title line above since the bulls are trying to reverse the markets and will succeed if they can print SPX +1629 today.

6/7/13; 9:00 AM EST =

6/5/13; 2:26 PM EST = +36; signal line is +31 but algorithm says stay short

6/5/13; 1:06 PM EST = +20; signal line is +31

6/5/13; 12:18 PM EST = +4; signal line is +32

6/5/13; 9:34 AM EST = +20; signal line is +33

STOCK MARKET BEARISH -- SHORT -- CAUTION

Keybot the Quant remains short as the Thursday session is underway. At the start, copper drops with JJC dropping under the important 41.40 bull-bear line but at the same time, UTIL recovers back above 477.91 helping the bulls.  Markets meander sideways with an  upward bias. The bears are driving the bus and have no worries today unless the SPX moves into the high 1620's. Watch UTIL 477.91 and 480.83.

6/7/13; 9:00 AM EST =

6/5/13; 9:34 AM EST = +20; signal line is +33

6/5/13; 9:30 AM EST = +4; signal line is +34

6/4/13; 11:21 AM EST = +20; signal line is +35

STOCK MARKET BEARISH -- SHORT -- CAUTION

Keybot the Quant remains bearish. The drama with UTIL 477.91 will continue. The bulls need to move UTIL above 477.91 to stop the market slide south.  Also, the bulls can develop strength if the GTX moves above 4760.  The bears need to keep UTIL under 477.91 and the market negativity continues. Also, the bears can develop more downside juice if RTH drops under 51.00 and/or JJC drops under 41.40. If UTIL moves above 477.91 and the SPX moves above 1629, Keybot will likely flip to the long side.

For the SPX starting at 1609, the bears only need two negative points, to push under 1607, and the downside will open wide with price printing 1600 in short order. The bulls need to move above 1629 to accelerate the upside, a formidable task of 20 handles higher, but not impossible, especially in these wild and volatile markets. A move through 1608-1628 is sideways action. Markets remain erratic and unstable. UTIL 477.91 will dictate if the broad indexes are moving higher or lower.

6/7/13; 9:00 AM EST =

6/4/13; 11:21 AM EST = +20; signal line is +35

6/4/13; 10:58 AM EST = +36; signal line is +37

STOCK MARKET BEARISH -- SHORT -- CAUTION

Keybot the Quant remains short in these wild and erratic markets.  The algo number and signal line keep wrestling for position. UTIL 477.91 opens the trap door for equities and the most important parameter to watch today.  So far, the UTIL 477.91 failure creates -18 SPX points today. Bears remain in the drivers seat. Bulls can wrestle back control if they move UTIL above 477.91. Keybot will need to see SPX 1647 today to want to flip long and considering the sell off so far, the imminent turn notation is removed for now. Markets will pivot on the Beige Book at 2 PM one and one-half hour from now.

6/7/13; 9:00 AM EST =

6/4/13; 11:21 AM EST = +20; signal line is +35

6/4/13; 10:58 AM EST = +36; signal line is +37

6/4/13; 9:31 AM EST = +20; signal line is +37

6/4/13; 9:30 AM EST = +36; signal line is +38

6/4/13; 3:27 PM EST = +52; signal line is +38 but algorithm says stay short

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

Keybot the Quant remains bearish moving into the Wednesday session. The algo wants to flip to the long side as shown by the higher algo number but internal programming rules will not trigger the move as yet. If the SPX touches 1647 today and stays above, Keybot will likely flip long. The printout below shows the oscillating drama yesterday. It appeared a no-brainer that Keybot would flip long but that was not the case due to the weakness in utilities. UTIL 480.83 will dictate market direction today. If UTIL stays above 480.83, the bulls will keep pushing markets higher aiming for SPX 1647. If UTIL 480.83 fails, the broad indexes are in serious trouble and market selling will increase.  The UTIL 477.91 remains as a trap-door for markets all this week.  If UTIL 477.91 fails, the markets will drop into a mini free-fall with the SPX likely losing from 10 to 20 handles quickly.

For the SPX today starting at 1631, the bulls need to touch the 1647 handle and it will be off to the races higher. The sturdy 1649-1650 resistance will likely give way in quick order and the SPX will move up into the 1650's.  The bears need to push under 1624 today to accelerate the downside which will likely tag 1618 in short order. A move through 1625-1646 is sideways action today. In a nutshell, UTIL 480.83 provides the market answer today. Markets remain erratic and very unstable and need to make an up or down decision.

6/9/13; 7:00 PM EST =

6/7/13; 9:00 AM EST =

6/4/13; 3:27 PM EST = +52; signal line is +38 but algorithm says stay short

6/4/13; 1:28 PM EST = +36; signal line is +38

6/4/13; 12:41 PM EST = +52; signal line is +38 but algorithm says stay short

6/4/13; 12:04 PM EST = +36; signal line is +37

6/4/13; 9:37 AM EST = +52; signal line is +38 but algorithm says stay short

6/3/13; 10:08 AM EST = +36; signal line is +37

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

Keybot the Quant remains short today. UTIL is fighting at the 480.85 level. Whichever way UTIL moves in relation to the 480.85 is the direction the markets will move. UTIL 477.91 remains a level where serious market trouble occurs. Bulls need to keep UTIL above 480.85. The SPX never made it up over the HOD earlier at 1646.53.

6/7/13; 9:00 AM EST =

6/4/13; 1:28 PM EST = +36; signal line is +38

6/4/13; 12:41 PM EST = +52; signal line is +38 but algorithm says stay short

6/4/13; 12:04 PM EST = +36; signal line is +37

6/4/13; 9:37 AM EST = +52; signal line is +38 but algorithm says stay short

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

Keybot the Quant remains short but the algo wants to flip to the long side. The algo number is above the signal line but other internal programming rules are preventing the move to the bull side, for now. JJC is above 41.38 now bullish. UTIL remains above 480.80, bullish.  If the SPX prints above 1646 and holds it a few minutes, Keybot should flip long.

6/7/13; 9:00 AM EST =

6/4/13; 9:37 AM EST = +52; signal line is +38 but algorithm says stay short

6/3/13; 10:08 AM EST = +36; signal line is +37

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

Keybot the Quant remains bearish heading into the Tuesday session. The bears had the markets on a silver platter yesterday, creating a failure in utilities, but the bulls managed to recover sending utilities higher and saving the day. Utilities (UTIL) and copper (JJC) remain key and will dictate market direction today. Watch UTIL 480.80 and 477.91. If UTIL falls under 480.80, markets will noticeably weaken, if 477.91 fails, markets will be moving far lower. Watch JJC 41.38 with price only pennies away. If JJC 41.38 and higher prints today, the bulls will be running markets higher.  If JJC moves above 41.38, and the SPX moves above 1641, it is likely that Keybot will flip to the long side, hence the imminent turn signal is placed in the title line.

For the SPX today starting at 1640, closing at the highs, the bulls only need to touch the 1641 handle and it will be off to the races higher with a move to test 1649-1650 resistance. The bears need to push under 1623 to regain their mojo. A move through 1624-1640 is sideways action today. The S&P futures are flat at this writing about 3 1/2 hours before the U.S. open with copper firmly higher.

6/7/13; 9:00 AM EST =

6/3/13; 10:08 AM EST = +36; signal line is +37

6/3/13; 10:02 AM EST = +20; signal line is +37

STOCK MARKET BEARISH -- SHORT -- CAUTION

Keybot the Quant remains short as the bulls strongly bounce utilities. UTIL now moving up towards 485 in a heartbeat to save the day.  The caution flag returns. Watch JJC 41.40, VIX 13.30 and UTIL 480.80 and 477.91 (this level is big trouble for markets but the bulls held the line today). The algo number and signal line are now only one point difference illustrating the intense bull-bear struggle ongoing in the markets.

6/7/13; 9:00 AM EST =

6/3/13; 10:08 AM EST = +36; signal line is +37

6/3/13; 10:02 AM EST = +20; signal line is +37

6/3/13; 9:36 AM EST = +4; signal line is +38

STOCK MARKET BEARISH -- SHORT

Keybot the Quant remains bearish as the algo prints two numbers directly after the opening bell. Watch UTIL 477.91, the bulls are losing their grasp, can they hold on? The UTIL 477.91 trap-door is starting to open. For now, the caution flag is removed. The bears are driving the bus.

6/7/13; 9:00 AM EST =

6/3/13; 9:36 AM EST = +4; signal line is +38

6/3/13; 9:31 AM EST = +20; signal line is +39

6/2/13; 7:00 PM EST EOM = +36; signal line is +40

STOCK MARKET BEARISH -- SHORT -- CAUTION

Keybot the Quant is short moving into the new trading week. The bears need to achieve UTIL 480.65 and/or 477.91, call it 481 and 478, as described in the previous post, and the markets will be dropping in force.  The bulls need to move the VIX back under 13.23 and/or the JJC above 41.50 to regain the bull mojo. If UTIL stays above 481, VIX above 13.23 and JJC below 41.50, status quo, then the equity markets float along sideways until one of the three parameters changes sides.

For the SPX starting at 1631, closing at the lows on Friday, the bears only need to see red futures overnight Sunday and the test of 1626-1627 support should occur in quick order. The bulls need to keep the futures green and prevent UTIL 481 from failing after the opening bell with all their might. Bulls will lose their grip on the markets if UTIL 481 fails.  A move through SPX 1632-1658 is sideways action. Keybot prints one pre-scheduled number this week on Friday morning. Markets remain erratic and unstable, involved in a bull-bear fight for leadership, as the small four-point spread between the algo number and signal line verifies.

6/9/13; 7:00 PM EST =

6/7/13; 9:00 AM EST =

6/2/13; 7:00 PM EST EOM = +36; signal line is +40

5/31/13; 10:00 AM EST = +36; signal line is +41

STOCK MARKET BEARISH -- SHORT -- CAUTION

Keybot remains bearish through the weekend.  The algo quietly moves through last week without printing any numbers except for the two pre-scheduled numbers. In a nutshell, the bears are creating market weakness with higher volatility and weakness in copper and commodities. The bulls continue to own most every other sector.  For next week, utilities are the key focus and will determine market direction. Two numbers are important; UTIL 480.65 and UTIL 477.91. UTIL begins the week at 482.16. If the 481 level fails, the broad indexes are in serious trouble with increased selling on tap. If 478 fails, that should act as a trap-door for markets and a large flush lower will likely occur such as a 10 to 30-handle drop in the S&P's in a matter of an hour or two. If UTIL stays above 481, the bulls will be sipping champagne by mid-week.

Other parameters and areas of interest can be identified once the standard Sunday number prints tomorrow.

6/2/13; 7:00 PM EST EOM =

5/31/13; 10:00 AM EST = +36; signal line is +41

5/28/13; 10:00 AM EST = +33; signal line is +42

STOCK MARKET BEARISH -- SHORT -- CAUTION

Keybot the Quant remains short. The bears make an initial run lower under the 1649 but could not hold this support failure so the bulls recover. The pre-scheduled number results in a tightening of the algo number to signal line spread to only five points. JJC remains well below 41.54 and VIX above 13.17 so the bears are happy. UTIL remains above 480.65 so the bulls are happy. Markets stumble sideways since none of these three parameters want to change sides.  The beat goes on.  SPX 1649 is important today.

6/2/13; 7:00 PM EST EOM =

5/31/13; 10:00 AM EST = +36; signal line is +41

5/28/13; 10:00 AM EST = +33; signal line is +42

STOCK MARKET BEARISH -- SHORT -- CAUTION

Keybot the Quant remains bearish moving into the Friday session.  Today is the last day of May. The algo continues to idle through the week without printing any numbers except for the pre-scheduled number on Tuesday. The same drama is in place. Bulls need to achieve either VIX 13.17 or JJC 41.54 to receive the all-clear signal for market upside. Bears need to achieve UTIL 480.65 to cause markets to sell off strongly. The broad indexes will motor along sideways until one of these three parameters make a decision.

For the SPX today starting at 1654, the bulls need to touch the 1662 handle and an upside party will result. The bears need to push under 1649 to accelerate the downside. A move through 1650-1661 is sideways action. The S&P futures are -11 at this writing four hours before the U.S. open indicating that the bears will make a run lower to begin the day. Markets remain very erratic and unstable. Keybot prints a pre-scheduled number this morning at 10 AM so the market action can be updated at that time.

6/2/13; 7:00 PM EST EOM =

5/31/13; 10:00 AM EST =

5/28/13; 10:00 AM EST = +33; signal line is +42

5/26/13; 7:00 PM EST = +32; signal line is +42

STOCK MARKET BEARISH -- SHORT -- CAUTION

Keybot the Quant remains bearish and has not printed any numbers this week except for the pre-scheduled number on Tuesday. Watch JJC 41.55, VIX 13.15 and UTIL 480.65. Copper and volatility, JJC and VIX, respectively, are causing market bearishness right now so the bulls need to attain one of the values listed to start the markets higher again. Utilities, UTIL, are causing market bullishness right now so the bears need to push UTIL under 480.65 to receive strong downside momo. Yesterday, UTIL failed but only for a couple minutes before quickly recovering.  The broad indexes dodge a bullet since many algo's will click in to the downside with accelerated market selling if UTIL 480.65 fails.

For the SPX starting at 1648, bulls and bears both need an 8 point swing in their favor to claim victory. The bulls need to move up through 1656 and touch the 1657 handle to accelerate the upside and the bears need to push under 1640 to accelerate the downside. A move through 1641-1656 is sideways action. In a nutshell, the bulls need higher copper and lower volatility while the bears need lower utilities. Markets remain unstable.

5/31/13; 10:00 AM EST =

5/28/13; 10:00 AM EST = +33; signal line is +42

5/26/13; 7:00 PM EST = +32; signal line is +42

STOCK MARKET BEARISH -- SHORT -- CAUTION

Keybot the Quant remains bearish moving into the Tuesday session. The bulls push hard to the upside but could not move copper higher or volatility lower, so they ran out of gas. Watch JJC 41.58, VIX 13.15 and GTX 4785. All three are in the bear camp. The bulls need to attain at least one of these three levels to develop upside oomph and place Keybot in a position to want to go long.  The bears will try to maintain this negativity moving forward and at the same time drive the utilities lower. If UTIL loses the 481 level, the broad indexes will weaken substantially. The bulls can hang on if they keep UTIL above 481 (now at 492).

For the SPX starting at 1660, the bulls need to revisit yesterday's high above 1674 to develop upside mojo. The bears need to push under 1653, about seven points lower, to accelerate the downside. A move through 1654-1673 is sideways action. The S&P futures are down 6 at this writing about five hours before the opening bell. Markets remain erratic and very unstable.

5/31/13; 10:00 AM EST =

5/28/13; 10:00 AM EST = +33; signal line is +42

5/26/13; 7:00 PM EST = +32; signal line is +42

STOCK MARKET BEARISH -- SHORT -- CAUTION

Keybot the Quant remains short as the broad indexes explode higher on the weaker yen. Watch VIX 13.13 and JJC 41.60 and both currently remain in the bear camp. The bulls need to win over one or both of these parameters to continue the upside and push Keybot to the long side. Bears need to keep both in the bear camp to create market weakness despite the strong pop higher. Markets remain erratic and unstable.

5/31/13; 10:00 AM EST =

5/28/13; 10:00 AM EST = +33; signal line is +42

5/26/13; 7:00 PM EST = +32; signal line is +42