STOCK MARKET BEARISH -- SHORT -- CAUTION -- TURN IS IMMINENT

Keybot the Quant is short but will likely flip to the long side at the opening bell.  The pre-scheduled number prints and the algo number remains above the signal line which is bullish.  The XLF is 14.63 pre-market well above the 14.51 the bulls needed. The Jobs Report results in very bullish futures, the SPX set to attack the 1375 level mentioned last evening.  Interestingly, the quant would have flipped long in the final minutes yesterday if the XLF would have gained only a measley two pennies more.

Keybot will likely move to the long side after the opening bell and take its lumps on the one day whipsaw trade. Since it will be a whipsaw move, the model will now trade only the single ETF's moving forward for about 45 days to lower risk. Markets are very much in a jagged sideways path, a very difficult trading environment.  A turn is imminent but caution is required, look for more wild gyrations in the days ahead, and of course, a whipsaw back to the short side either today or early next week. Keybot's turn to the long side will be updated and posted this morning.

8/5/12; 7:00 PM EST =

8/3/12; 9:00 AM EST = +44; signal line is +40 but algorithm says stay short

8/2/12; 3:54 PM EST = +44; signal line is +39 but algorithm says stay short