STOCK MARKET BEARISH -- SHORT

Keybot the Quant remains short to start the new trading week.  Utilities are the only major sector that is bullish as measured by the algorithm.  Keybot also indicates that housing is in a double dip recession again.

Copper, commodities and volatility are key areas to start the week. The VIX needs to stay above 17.71, now at 17.95, only pennies above, to keep the market bears happy, otherwise, the bulls will wrestle back control.

Copper is a nickel under the 418.30 level which helps the broad market bears, as long as copper stays under that level.

Commodities, as measured by the CRB, is critical to start the week.  CRB must stay under 350.37, now at 348.61, only a buck-and-a-half under currently, to keep the bear party going.  If the CRB jumps above 350.37, broad market bulls will be taking over again.  Copper and commodities will move in sync with the euro, stronger euro=stronger commodities, weaker euro=weaker commodities, and the way the commodities go is the way the broad makets will go.

For the SPX tomorrow, the fun begins at the opening bell from 1300.  If the market bulls touch the 1313 handle, a melt up will occur, the copper and commodites levels listed above will be exceeded, as well as lower volatility, and the market bulls will be running the indexes higher.

However, if the SPX loses the 1298 handle afte rthe open, only two easy points lower, the market bears will accelerate the selling towards 1294.  There is air underneath 1294 so if the market bears come to play tomorrow, they can do some further damage. Thus, simply watch which side the SPX wants to move towards tomorrow, either under 1298 to show bears in control, or over 1313 to show bulls in control.  Anything else is sideways slop all day long.

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

6/30/11; 7:00 PM EST =

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

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

6/24/11; 10:00 AM EST =

6/19/11; 7:00 PM EST =

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

6/12/11; 7:00 PM EST =

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

6/5/11; 7:00 PM EST = -28

6/3/11; 2:58 AM EST = -28

6/3/11; 11:48 AM EST = -14

6/3/11; 11:35 AM EST = -28

6/3/11; 10:37 AM EST = -14

6/3/11; 9:00 AM EST = -28

6/2/11; 10:53 AM EST = -28

6/2/11; 10:32 AM EST = -14

6/1/11; 3:23 PM EST = -28

6/1/11; 2:57 PM EST = -14

6/1/11; 2:42 PM EST = -28

6/1/11; 11:34 AM EST = -14

6/1/11; 10:44 AM EST = +2; signal line is +5; go short 1331; (Benchmark SPX for 2011=+5.8%)(Keybot this trade=-0.3%; Keybot for 2011=+3.3%)(Actual this trade via SPY=-0.8%; Actual for 2011=-1.3%)