STOCK MARKET BEARISH -- SHORT

Keybot the Quant remains short to start the new trading week. Markets are very much a bull-bear struggle the last couple weeks.  Financials, semi's, commodities and copper are bearish while utilities, retail and lower volatility are bullish.

The VIX 17.66 level is key.  Now at 17.43, if the VIX moves above 17.66, the market bears will be in control and the indexes will sell off.  If the bulls can maintain the VIX below 17.66, market buoyancy will continue.

For tomorrow, if the SPX touches 1342, the market bulls will drive the indexes higher. If the SPX drops under 1330.67, then the bears are in control and selling will accelerate driving markets lower. If 1330.67 is lost, watch the VIX to see if the move down is in concert with the VIX above 17.66, if so, the day will definitely be in the bears control. If not, then the move down in the indexes will simply be another blip and indexes will become buoyant again as the day proceeds.

If the market bulls drive the SPX higher but do not attain the 1342 handle, then all that means is the bull-bear struggle and sideways funk will continue along.

The algorithm clicks off only one pre-scheduled number this week on Friday at 10 AM.  We saw how interesting the algorithm operates, one day it may click off six or more numbers, but other days, like Thursday and Friday, Keybot simply idles along, continuously scanning, but not printing out any numbers. Thus, stay tuned.  Caution is warranted since markets continue to be unstable.

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 = +2; signal line is +17

5/17/11; 3:34 PM EST = +2

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