STOCK MARKET BEARISH -- SHORT

Keybot the Quant remains short to start the Tuesday session. A crazy start to the week with the algorithm clicking off six numbers yesterday. The pre-scheduled number just clicked off and is now negative, -12, first time in a couple months for a negative number.  Thus, the bears are in firm control now.  Market bulls are trying to cling on to utilities and retail.

For today, the market bulls can recover if the SPX gets above 1343.  SPX starts at 1329, and, by the look of the futures, this is a formidable task for bulls.  Market bears, however, have the wind at their back now; time to see if they can run with the ball.  If the SPX loses the 1327 handle, only moving a couple points lower once the bell rings, then the selling in the indexes will accelerate.

Of special note, by Keybot's metrics, the housing market has slipped back into a double dip today.

6/5/11; 7:00 PM EST =

6/3/11; 9:00 AM EST =

5/31/11; 7:00 PM EST EOM =

5/31/11; 10:00 AM EST =

5/29/11; 7:00 PM EST =

5/27/11; 10:00 AM EST =

5/22/11; 7:00 PM EST =

5/17/11; 9:00 AM EST = -12

5/16/11; 3:27 PM EST = 0

5/16/11; 2:49 PM EST = +14; signal line is +20

5/16/11; 2:34 PM EST = 0

5/16/11; 12:06 PM EST = +14; signal line is +20

5/16/11; 10:19 AM EST = +30; signal line is +21 but algorithm says stay short

5/16/11; 9:42 AM EST = +14; signal line is +20

5/15/11; 7:00 PM EST = +30; signal line is +21 but algorithm says stay short

5/13/11; 1:44 PM EST = +30; signal line is +22 but algorithm says stay short

5/13/11; 1:35 PM EST = +14

5/13/11; 10:00 AM EST = +30; signal line is +22 but algorithm says stay short

5/12/11; 10:09 AM EST = +30; signal line is +21 but algorithm says stay short

5/12/11; 9:51 AM EST = +16; signal line is +22

5/12/11; 9:44 AM EST = 0

5/12/11; 9:30 AM EST = +14

5/11/11; 3:54 PM EST = +30; signal line is +23 but algorithm says stay short

5/11/11; 1:13 PM EST = +14; signal line is +23

5/11/11; 12:37 PM EST = +30; signal line is +23 but algorithm says stay short

5/11/11; 12:16 PM EST = +14; signal line is +24; go short 1342; (Benchmark SPX for 2011=+6.7%)(Keybot this trade=-0.6%; Keybot for 2011=+3.1%)(Actual this trade via DDM=-1.1%; Actual for 2011=-0.3%)

5/11/11; 9:30 AM EST = +30; signal line is +25