STOCK MARKET BEARISH -- SHORT

Keybot remains short after the pre-scheduled number shows no changes.  Markets are trailing along sideways today so far but watch that 1331 handle, if it is lost, accelerated selling will occur. The financials, XLF, are under 15.28, the number Keybot is currently using as a bull-bear line so this fosters weakness in the broad markets.  Semiconductors made an attempt at a higher move after the open but promptly fell on its sword. Volatility, VIX, is now up and over 20 which is bearish. Watch retail, RTH, now at 110.06 and drifting lower. The algorithm is using a number of 109.43 as a bull-bear line, only about 50 cents lower. If retail hits this number the broad markets will weaken significantly.

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

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

7/26/11; 10:00 AM EST = +4; signal line is +24

7/25/11; 9:30 AM EST = +4; signal line is +24

7/24/11; 7:00 PM EST = +34; signal line is +25 but algorithm says stay short

7/22/11; 11:36 AM EST = +34; signal line is +25 but algorithm says stay short

7/22/11; 9:43 AM EST = +18; signal line is +24

7/21/11; 12:39 PM EST = +34; signal line is +23 but algorithm says stay short

7/21/11; 9:49 AM EST = +18; signal line is +20

7/19/11; 9:00 AM EST = +4; signal line is +19

7/18/11; 3:54 PM EST = +4; signal line is +17

7/18/11; 10:06 AM EST = -10

7/17/11; 7:00 PM EST = +4; signal line +15

7/15/11; 10:00 AM EST = +4

7/11/11; 10:34 AM EST = +4; signal line is +12; go short 1324; (Benchmark SPX for 2011=+5.3%)(Keybot this trade=+3.0%; Keybot for 2011=+7.8%)(Actual this trade via IWM=+3.7%; Actual for 2011=+2.8)