STOCK MARKET BULLISH -- LONG -- CAUTION

Keybot flipped back to the long side five minutes after the opening bell at SPX 1350.  Big fight for the 1349.44 level after the open but the market bulls won out and punched above.  Financials and commodities are in the bear camp but utilities, semi's, retail and lower volatility all favor the bulls.

Keep in mind that the algorithm is only five points above the signal line, thus, the markets remain unstable and caution is warranted.  Market bulls will maintain control as long as the VIX stays below the 17.60 area, and, at 16.13, down 12% today, it is obvious why the bulls are running.

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; 9:00 AM EST =

5/15/11; 7:00 PM EST =

5/13/11; 10:00 AM EST =

5/10/11; 9:35 AM EST = +30; signal line is +25; go long 1350; (Benchmark SPX for 2011=+7.3%)(Keybot this trade=+0.4%; Keybot for 2011=+3.7%)(Actual this trade via SDS=+0.7%; Actual for 2011=+0.8%)

5/9/11; 12:01 PM EST = +30; signal line is +26 but algorithm says stay short

5/9/11; 11:49 AM EST = +16; signal line is +27

5/9/11; 10:25 AM EST = 0

5/8/11; 7:00 PM EST = +16

5/6/11; 12:34 PM EST = +16

5/6/11; 9:30 AM EST = +30; signal line is +33

5/6/11; 9:00 AM EST = +16

5/5/11; 3:58 PM EST = +16

5/5/11; 3:17 PM EST = 0

5/5/11; 3:06 PM EST = +16

5/5/11; 11:33 AM EST = +30

5/5/11; 11:08 AM EST = +16

5/5/11; 10:50 AM EST = +30

5/5/11; 9:58 AM EST = +44; signal line is +41 but algorithm says stay short

5/5/11; 9:57 AM EST = +30

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

5/4/11; 3:07 PM EST = +28

5/4/11; 2:19 PM EST = +44; signal line is +40 but algorithm says stay short

5/4/11; 12:34 PM EST = +28

5/4/11; 12:22 PM EST = +14

5/4/11; 10:19 AM EST = +28

5/4/11; 10:07 AM EST = +14

5/4/11; 10:06 AM EST = +28

5/4/11; 9:57 AM EST = +44; signal line is +42 but algorithm says stay short

5/4/11; 9:30 AM EST = +60; signal line is +41 but algorithm says stay short

5/3/11; 3:40 PM EST = +44; signal line is +40 but algorithm says stay short

5/3/11; 1:40 PM EST = +28; signal line is +39; go short 1355; (Benchmark SPX for 2011=+7.7%)(Keybot this trade=+2.3%; Keybot for 2011=+3.3%)(Actual this trade via SPY=+2.1%; Actual for 2011=+0.1%)

5/3/11; 12:14 PM EST = +44; signal line is +39