STOCK MARKET BULLISH -- LONG -- CAUTION

Keybot the Quant remains long but the algorithm number is within 6 points of the signal number. Financials flip flopped again today, now they are back into the bear camp.  So the two buddies of late, copper and financials, team together again to cast negativity on equities.

For tomorrow, watch XLF 16.33, if financials stay under this level, now only two pennies below at 16.31, then the bears will maintain a negative bias on markets.  The semi's are worth watching, the algorithm started to focus on them again, SOX now at 445, comfortably bullish, but if the SOX drops only four points from here, it will fall into the bear camp.  The key to watch tomorrow will be volatility, the VIX, now at 16, if it jumps up thru 17.5, then the market bears will push the broad indexes lower.

SPX 1371 overhead resistance held the index in check today.  If a 1371 handle is attained tomorrow, the SPX will accelerate upwards and financials will be bullish more than likely.  If the SPX drops under 1358, only 3 points lower than the close tonight, then the indexes will accelerate the move down.

The pre-sceduled algorithm numbers for May were added to the printout list below; a pre-scheduled number will print on Friday morning this week. Caution is warranted, markets are unstable. Keybot most focused on copper, financials, semi's and volatility.

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 =

5/15/11; 7:00 PM EST =

5/13/11; 10:00 AM EST =

5/8/11; 7:00 PM EST =

5/6/11; 9:00 AM EST =

5/2/11; 12:21 PM EST = +44; signal line is +38

5/1/11; 7:00 PM EST; EOM (April) = +60

4/29/11; 10:00 AM EST = +60

4/28/11; 10:45 AM EST = +60

4/26/11; 10:00 AM EST = +44; signal line is +40

4/25/11; 9:30 AM EST = +44

4/24/11; 7:00 PM EST = +60

4/21/11; 9:35 AM EST = +60

4/20/11; 9:30 AM EST = +44; signal line is +42; go long 1324; (Benchmark SPX for 2011=+5.3%)(Keybot this trade=-0.7%; Keybot for 2011=+1.0%)(Actual this trade via DXD=-1.9%; Actual for 2011=-2.0%)

4/19/11; 9:00 AM EST = +28