STOCK MARKET BEARISH -- SHORT

Keybot the Quant continues to ride the short side. The semiconductors broke down today. The market bulls now only have two legs to stand on; utilities and retail.  The SOX collapsed at lunch time providing ample time to signal another leg down for the broad markets. Thus, over the last couple days, volatility, financials and now semi's have joined the bear camp.

SPX:VIX ratio fell thru 35 at 12:30 PM so that was further evidence of trouble in paradise. Shananigans in the final minute pushed the SPX:VIX back above 35, so watch this closely tomorrow.  If SPX:VIX ratio falls back under 35 a large down day will be on tap again. If SPX:VIX stays above 35, the market bulls are fighting back and stopping the bleeding. SOX will dictate market direction; watch 377.50, now at 374.35, about three bucks under.  If SOX regains 377.50, the broad markets will recover and stage a bounce back rally. If SOX stays under 377.50, markets will remain weak.

For the SPX, starting at 1216, if the market bears can move under 1210 strong support, the selling should accelerate to the downside.  The algo number is at -40 well under the signal line so the caution flag can be set aside for now.  Markets remain unstable and subject to quick moves, up or down.

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

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

11/27/11; 7:00 PM EST =

11/25/11; 10:00 AM EST =

11/20/11; 7:00 PM EST =

11/17/11; 12:12 PM EST = -40; signal line is -14

11/17/11; 9:00 AM EST = -24; signal line is -13

11/16/11; 3:11 PM EST = -24; signal line is -12

11/16/11; 1:26 PM EST = -10; signal line is -12 but algorithm says stay short

11/16/11; 9:30 AM EST = -24; signal line is -12

11/15/11; 3:58 PM EST = -10; signal line is -12 but algorithm says stay short

11/15/11; 1:36 PM EST = +6; signal line is -10 but algorithm says stay short

11/15/11; 12:35 PM EST = -10; signal line is -10 but algorithm says stay short

11/15/11; 11:27 AM EST = -24; signal line is -9; go short 1247; (Benchmark SPX for 2011=-0.9%)(Keybot this trade=-0.3%; Keybot for 2011=+24.0%)(Actual this trade via SPY=-0.7%; Actual for 2011=+28.2%)