STOCK MARKET BEARISH -- SHORT

Keybot the Quant remains short to start the new week of trading.  The Sunday pre-scheduled number results in a two-point drop to the signal line but the bears maintain a 47-point spread before the bulls can regain control of the markets. Three pre-scheduled numbers print this week; Tuesday morning, Wednesday evening and Friday morning. Very simply, the bulls need to see RTH 44.47 and/or GTX 4895 to lock in an upside recovery rally that will overtake SPX 1419, 1424 and higher. The bears need to push the XLF under 15.60 and the markets will take another leg lower with the SPX dropping well under 1400.

For the SPX for Monday, starting at 1412, the bulls need to touch the 1417 handle and hold it a few minutes, if so, an upside recovery rally is in play with the SPX accelerating several handles higher likely testing 1424 resistance in quick order.  If the bears continue to apply pressure and push the SPX under 1403, markets will accelerate to the downside targeting the 1391-1397 support area in short order.  A move thru 1404-1416 is sideways action. Stay alert. A market recovery rally is in play now that the SPX has fallen from over 1460 down to test 1403 in only seven days time, a drop of -3.9%. If the bulls mount a recovery rally the importance of the 1434 resistance level cannot be understated.

11/4/12; 7:00 PM EST =

11/2/12; 9:00 AM EST =

10/31/12; 7:00 PM EST EOM =

10/30/12; 10:00 AM EST =

10/28/12; 7:00 PM EST = -15; signal line is +32

10/26/12; 10:00 AM EST = -15; signal line is +34

Note Added 10/30/12 at 6:00 AM EST:  U.S. markets were closed to trading on Monday and will remain closed thru Tuesday.