STOCK MARKET BEARISH -- SHORT -- CAUTION

Keybot the Quant is short. The algo was active in Monday's trade printing five numbers. The retail sector is a key focus for Keybot. Continue watching RTH 41.38 since it directly affects broad market direction.  The SPX:VIX 68 level remains important as well. If the markets rally today, as the futures currently indicate, and RTH moves above 41.38 and SPX:VIX above 68, the bulls have a full fledged strong rally ongoing.  If the markets rally, but the RTH and SPX:VIX remain bearish, the bulls got nothing.  Watch NYA 7630 moving forward, the NYA now only 75 points above this danger line.

For the SPX starting at 1338, the market bulls need to touch 1352, if so, the upside will accelerate for markets.  The bears need to push under the strong support at 1337 and the downside will accelerate.  A move thru 1338-1350 is sideways action. Markets remain unstable and caution is required as the bull-bear tug-o-war continues.

5/20/12; 7:00 PM EST =

5/16/12; 9:00 AM EST =

5/14/12; 2:19 PM EST = -16; signal line +11

5/14/12; 1:52 PM EST = +0; signal line +12

5/14/12; 11:41 AM EST = -16; signal line +14

5/14/12; 11:27 AM EST = +0; signal line +15

5/14/12; 9:30 AM EST = -16; signal line +15