STOCK MARKET BEARISH -- SHORT -- CAUTION -- TURN MAY BE IMMINENT

Keybot the Quant flips to the bear side shortly after this morning's opening bell at SPX 2091. The move came on very fast. Financials stayed in the bear camp, then volatility spiked higher and then the semiconductors broke down. Thus, the bears have a turn at bat. The break lower was very clean for once; lately there has been a lot of drama around the turns. As seen by the last print, the algorithm is already champing at the bit to go long again. If the SPX moves above 2095, Keybot will likely flip long.

For Wednesday, the bulls need to push the chips higher, SOX above 678, and/or the banks higher, XLF above 22.77. Either one will tell you that the market bulls have legs and will take stocks higher. The bears need higher volatility, VIX above 15.88, and/or lower commodities, GTX under 2310, to prove that down is the path ahead for stocks. These four parameters currently control broad stock market direction so there are several moving parts. Pay attention to the VIX 15.88 level it will tell  you if the bears got game. If VIX stays under 15.88, the bears will fold like a cheap suit.

For the SPX for Wednesday starting at 2089, the bulls need to move above 2095 and bingo, price will accelerate back above 2100. The bears need to push below 2081 and a flush lower will occur into the low to mid 2070's a critical support area. A move through 2082-2094 is sideways action.

On the last trade, the computer program gains +1.9% and the actual trading nearly +4%. Keybot exits DDM and enters SDS remaining in the 2x ETF's. The benchmark SPX Index is up +2.3% this year. Stay alert for a potential whipsaw back to the long side. Watch  volatility and the chips.

7/10/16; 7:00 PM EST =

7/8/16; 9:00 AM EST =

7/5/16; 3:46 PM EST = +66; signal line is +55 but algorithm remains short

7/5/16; 9:40 AM EST = +52; signal line is +55; go short 2091; (Benchmark SPX for 2016 = +2.3%)(Keybot algo this trade = +1.9%; Keybot algo for 2016 = +7.5%)(Actual results this trade = +3.7%; Actual results for 2016 = +14.7%)

7/5/16; 9:36 AM EST = +68; signal line is +55

7/3/16; 7:00 PM EST = +82; signal line is +56

7/1/16; 12:22 PM EST = +82; signal line is +55

6/30/16; 7:00 PM EST EOM = +98; signal line is +54

6/30/16; 3:58 PM EST = +98; signal line is +52

6/30/16; 3:51 PM EST = +68; signal line is +50

6/30/16; 3:23 PM EST = +82; signal line is +50

6/30/16; 2:16 PM EST = +98; signal line is +49

6/30/16; 10:43 AM EST = +82; signal line is +47

6/29/16; 1:29 PM EST = +68; signal line is +45

6/29/16; 1:11 PM EST = +52; signal line is +44

6/29/16; 12:12 PM EST = +68; signal line is +44

6/29/16; 9:36 AM EST = +52; signal line is +43; go long 2053; (Benchmark SPX for 2016 = +0.4%)(Keybot algo this trade = +0.0%; Keybot algo for 2016 = +5.6%)(Actual results this trade = -0.0%; Actual results for 2016 = +11.0%)