STOCK MARKET BEARISH -- SHORT -- CAUTION

Keybot the Quant is short moving into the Monday trading session. The break down in semiconductors is a game-changer. The algo is tracking semi's, volatility and financials. Volatility and semi's will dictate market direction. The bulls need to move SOX above 425 to enable markets to recover. If SOX moves above 425, Keybot will likely flip to the long side. The bears need to push the VIX above 14.47 and it will be smooth sailing to the downside. If SOX stays under 425, and VIX stays under 14.47, the broad indexes will float along sideways. If the bears start to run the markets lower with the VIX above 14.47, watch XLF 17.80 since this will kick in significant market downside.

For the SPX starting at 1553, the bulls need to touch 1560 and the upside will accelerate to 1565 in a heartbeat. The bears need to push below 1540 and the downside will accelerate to test 1531 in a heartbeat. A move through 1541-1559 is sideways action. In a nutshell, SOX 425 and VIX 14.47 is all that matters. Markets remain unstable and erratic. The bears are driving the bus to begin the new week.

4/14/13; 7:00 PM EST =

4/12/13; 10:00 AM EST =

4/7/13; 7:00 PM EST = +33; signal line is +41

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