STOCK MARKET BEARISH -- SHORT -- CAUTION

Keybot the Quant remains short through the weekend. VIX dropped like a stone at the end of the session allowing the SPX to recover into the closing bell. The landscape changes last week since not only are sectors such as copper and commodities weak, but now semiconductors have joined the bear camp. These building blocks of all services and products are dropping off. The volatility drama will pick up again on Monday morning. The algo will verify the SOX 425 and VIX 14.47 levels for Monday, or tweak them slightly, after the Sunday pre-scheduled number prints tomorrow. For next week, bulls win with SOX 425; bears win with VIX 14.47. As long as SOX stays under 425, Keybot will likely remain short regardless of the SPX moving higher. The caution flag is back since volatility dropped under 14.47.

4/7/13; 7:00 PM EST =

4/5/13; 1:31 PM EST = +33; signal line is +42

4/5/13; 11:28 AM EST = +17; signal line is +42