STOCK MARKET BEARISH -- SHORT

Keybot the Quant remains short as the final session of the week begins. The algorithm had a wild start on Monday, clicking off six numbers, but, since then, not so much. The last two sessions very quiet with nothing going on; markets simply idling sideways.

For today, if the SPX gets above 1345, then the market bulls will run the indexes a few handles higher today.  By the look of the futures, markets actually want to give back some at the opening bell. Market bears need to push the SPX under 1337 if they expect to increase the selling.

Continue to watch volatilty which has collapsed since Wednesday afternoon, hence, the indexes show buoyancy.  The minute charts show positive divergence for volatility so a bounce is expected, and this would verify the bearish posture in the indexes to start the day.  Market bulls continue to be happy and complacent, no worries, no fears.  VIX at 15.52 will need to gain two points before market bears can get anything substantial going on the down side.  If VIX remains under 17.5-ish, then the market bulls will maintain the current market buoyancy.

6/5/11; 7:00 PM EST =

6/3/11; 9:00 AM EST =

5/31/11; 7:00 PM EST EOM =

5/31/11; 10:00 AM EST =

5/29/11; 7:00 PM EST =

5/27/11; 10:00 AM EST =

5/22/11; 7:00 PM EST =

5/17/11; 3:34 PM EST = +2

5/17/11; 9:00 AM EST = -12

5/16/11; 3:27 PM EST = 0

5/16/11; 2:49 PM EST = +14; signal line is +20

5/16/11; 2:34 PM EST = 0

5/16/11; 12:06 PM EST = +14; signal line is +20

5/16/11; 10:19 AM EST = +30; signal line is +21 but algorithm says stay short

5/16/11; 9:42 AM EST = +14; signal line is +20

5/15/11; 7:00 PM EST = +30; signal line is +21 but algorithm says stay short

5/13/11; 1:44 PM EST = +30; signal line is +22 but algorithm says stay short

5/13/11; 1:35 PM EST = +14

5/13/11; 10:00 AM EST = +30; signal line is +22 but algorithm says stay short

5/12/11; 10:09 AM EST = +30; signal line is +21 but algorithm says stay short

5/12/11; 9:51 AM EST = +16; signal line is +22

5/12/11; 9:44 AM EST = 0

5/12/11; 9:30 AM EST = +14

5/11/11; 3:54 PM EST = +30; signal line is +23 but algorithm says stay short

5/11/11; 1:13 PM EST = +14; signal line is +23

5/11/11; 12:37 PM EST = +30; signal line is +23 but algorithm says stay short

5/11/11; 12:16 PM EST = +14; signal line is +24; go short 1342; (Benchmark SPX for 2011=+6.7%)(Keybot this trade=-0.6%; Keybot for 2011=+3.1%)(Actual this trade via DDM=-1.1%; Actual for 2011=-0.3%)

5/11/11; 9:30 AM EST = +30; signal line is +25