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

Keybot the Quant remains short though the dramatic market roller coaster ride. Note how financials, XLF, came up to the 24.62 level called out by the algo ahead of time, and fail. The sneaky bulls, however, instead boosted the retail sector to keep stocks buoyant. The SPX 2051-2052 level failed which signaled curtains for the stock market but after a dip to 2044 stocks recovered so death was cheated.

The bulls need financials and utilities to move higher. If XLF moves above 24.62 and/or UTIL above 580.91, either would do, and the SPX moves above 2084, Keybot will likely flip long, hence the imminent turn status in the title line. The bears need to push RTH under 75.90 to re-accelerate the downside selling action in stocks. If stocks sell off at the open, S&P futures are -12 about one hour in front of the bell, watch RTH. If RTH does not dip under 75.90 then the bears got nothing and stocks will recover. If RTH falls under 75.90 the stock market action will remain weak.

For the SPX on Wednesday starting at 2081, the bulls need to touch the 2084 handle, only three points higher, and bingo, the upside will accelerate to 2091 in a heartbeat. The bulls need to push the SPX under 2044 to regain their mojo a formidable task. Instead the bears will focus on keeping banks and utes weak while trying to send retail stocks lower.

7/12/15; 7:00 PM EST =

7/7/15; 2:45 PM EST = -22; signal line is -10

7/7/15; 11:47 AM EST = -38; signal line is -9

7/7/15; 10:42 AM EST = -52; signal line is -7

7/6/15; 9:36 AM EST = -38; signal line is -4