STOCK MARKET BEARISH -- SHORT -- CAUTION

Keybot flipped to the short side after the open at SPX 1348.  The NYA failed 7750, and volatility spiked, the VIX now over 20, and the retail sector is also weak.  Watch RTH 41.90 today, now at 41.74 contributing bearishness. The first signs of any recovery move for markets will likely be signaled by the RTH moving back above 41.90. If RTH stays under 41.90, the markets will remain weak going forward. The algorithm program gained one-half percent for the latest trade while the actual trading execution resulted in a flat trade via SSO. The caution flag is probably not needed but considering the magnitude and turmoil this morning, the caution will remain out for now.  The bears are in control.

7/29/12; 7:00 PM EST =

7/27/12; 10:00 AM EST =

7/23/12; 9:30 AM EST = -16; signal line is +28; go short 1348; (Benchmark SPX for 2012  = +7.2%)(Keybot this trade = +0.5%; Keybot for 2012 = +9.7%)(Actual this trade = +0.0%; Actual for 2012 = +8.8%)

7/22/12; 7:00 PM EST = +28 signal line is +29 but the algorithm says stay long

7/20/12; 9:45 AM EST = +28 signal line is +28 but the algorithm says stay long

7/20/12; 9:30 AM EST = +44 signal line is +27

7/19/12; 9:30 AM EST = +60 signal line is +26

7/18/12; 9:00 AM EST = +44 signal line is +23

7/17/12; 11:55 AM EST = +44 signal line is +21

7/17/12; 10:00 AM EST = +30 signal line is +20

7/17/12; 9:30 AM EST = +60 signal line is +19

7/16/12; 3:37 PM EST = +46 signal line is +18

7/16/12; 2:35 PM EST = +60 signal line is +17

7/16/12; 2:04 PM EST = +46 signal line is +15

7/16/12; 11:32 AM EST = +32 signal line is +14

7/16/12; 11:14 AM EST = +46 signal line is +13

7/16/12; 10:29 AM EST = +32 signal line is +12

7/16/12; 9:49 AM EST = +16 signal line is +11

7/16/12; 9:35 AM EST = +32 signal line is +11

7/15/12; 7:00 PM EST = +46 signal line is +11

7/13/12; 11:40 AM EST = +46 signal line is +10

7/13/12; 10:00 AM EST = +32 signal line is +9

7/13/12; 9:38 AM EST = +32; signal line is +10; go long 1342; (Benchmark SPX for 2012  = +6.7%)(Keybot this trade = +0.9%; Keybot for 2012 = +9.2%)(Actual this trade = +1.9%; Actual for 2012 = +8.8%)