STOCK MARKET BEARISH -- SHORT

Keybot the Quant remains short. The bears create market weakness into the closing bell sending XLF under 21.87. XLF 21.87 is key for Tuesday. Bears win if financials remain weak. If XLF moves above 21.87, equities will begin a recovery rally. Bulls will also receive energy and stop the downside bleeding if RTH moves above 59.40, JJC above 37.65 and/or VIX drops under 14.60. If these parameters remains bearish as they all are now, markets will remain weak and leak lower. Bears will create further selling pressure with lower commodities; watch GTX 4888 as the bull-bear line in the sand.

For the SPX for Tuesday starting at 1845, the bulls need to recover today's drop to regain their mojo, a formidable task but not impossible. The bears need only three points lower, to push under the strong 1841 support and a downside acceleration will occur quickly with price dropping to the mid and low 1830's. A move through 1842-1863 is sideways action. If any one of the four parameters above, XLF 21.87, RTH 59.40, JJC 37.65 or VIX 14.60 occurs, the caution flag will be needed. If 2 of the 4 turn bullish, Keybot may set up to flip long. If XLF remains under 21.87, the bulls got nothing and bears will keep pushing equities lower.

4/11/14; 10:00 AM EST =

4/7/14; 3:57 PM EST = +17; signal line is +45

4/7/14; 2:53 PM EST = +33; signal line is +46