STOCK MARKET BEARISH -- SHORT - CAUTION

Keybot remains short, a calm start to the week results in no algorithm numbers today.  Keybot simply idled along all day with no changes.  The rally was on low volume.  With low volume and elevated volatility, the jello can be pushed around anywhere on the plate, up or down.  Since the algorithm is short, and if the market bulls want to gain any traction, they will need to do it with a higher retail sector.

Retail is the bulls best chance to continue a rally.  If the RTH, now at 106.44, can get above 107.10, today RTH came within 15 cents of this goal, then the broad markets are going to move higher.  If RTH cannot get above 107.10 tmorrow, then the market bears are going to start pushing back hard.

For the SPX tomorrow, starting at 1280.10, if the market bulls can touch the 1285 handle, they will be in clover, the buyers will come in force and the indexes will drive higher; the retail sector will be moving up nicely.  If, however, the market bears provide some push back, which the trend lately does show large up days leading to large down days, and large down days leading to large up days, the bears need to drive the SPX lower to test 1268 support again, all they have to do is get there, and that will be close enough, support will fail and we will be at 1262 in a heart beat, then potentially moving down to the starting year number at 1258.  If the SPX moves thru the 1270 to 1284 range tomorrow with no breakouts either way, that will result in a sideways slop day with neither side happy.  Everyone then goes home to await the Europe/Greece vote result for Wednesday.

Today's action did not mean much. Markets remain unstable.  Caution is warranted. Keybot clicks off a pre-scheduled number tomorrow morning at 10 AM.

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

7/29/11; 10:00 AM EST =

7/26/11; 10:00 AM EST =

7/24/11; 7:00 PM EST =

7/19/11; 9:00 AM EST =

7/17/11; 7:00 PM EST =

7/15/11; 10:00 AM EST =

7/10/11; 7:00 PM EST =

7/8/11; 9:00 AM EST =

7/3/11; 7:00 PM EST =

7/1/11; 10:00 AM EST =

6/30/11; 7:00 PM EST EOM EOQ2 EOH1=

6/28/11; 10:00 AM EST =

6/26/11; 7:00 PM EST = -42

6/24/11; 9:45 AM EST = -42