STOCK MARKET BULLISH -- LONG

Keybot the Quant remains comfortably long as the end of the month, end of Q2 and end of H1 closes out this evening with no change to the algorithm number.

Watch the financials tomorrow since they will help set the direction for the broad markets.  The XLF is at 15.35 and perceived as bearish by the algorithm but only by one measly point.  If the XLF moves above 15.36 tomorrow, the market bulls will run the indexes for one more day. If the XLF stays under 15.36, that will be the hint that the indexes have had enough upside this week and plan on floating out sideways or sideways with a downward bias.

For the SPX for tomorrow, if the market bulls can touch a 1322 handle, only a point and one-half higher, the buyers will come back in force again, and the day will be another run higher, the SPX moving up thru 1323 and 1326 and perhaps testing formidable resistance at 1329.  Markets are typically buoyant the two days in front of a holiday weekend, today certainly was.

The market bears continue to hold the short end of the stick.  Bears need to drive the SPX south 13 points, to get under the 1308 handle, if they want to accelerate the downside. Otherwise, a move between 1308 and 1321 represents sideways slop and the indexes will slide into the weekend on the lower anticipated volume.

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

7/29/11; 10:00 AM EST =

7/26/11; 10:00 AM EST =

7/24/11; 7:00 PM EST =

7/19/11; 9:00 AM EST =

7/17/11; 7:00 PM EST =

7/15/11; 10:00 AM EST =

7/10/11; 7:00 PM EST =

7/8/11; 9:00 AM EST =

7/3/11; 7:00 PM EST =

7/1/11; 10:00 AM EST =

6/30/11; 7:00 PM EST EOM EOQ2 EOH1= +18

6/30/11; 1:16 PM EST = +18

6/30/11; 12:08 PM EST = +34

6/29/11; 10:41 AM EST = +18

6/29/11; 9:30 AM EST = +4

6/28/11; 10:30 AM EST = -12

6/28/11; 10:00 AM EST = -28; signal line is -30

6/28/11; 9:36 AM EST = -28; signal line is -30; go long 1285; (Benchmark SPX for 2011=+2.2%)(Keybot this trade=-0.6%; Keybot for 2011=+4.8%)(Actual this trade via DOG=-0.8%; Actual for 2011=-0.9%)

STOCK MARKET BULLISH -- LONG

Keybot remains long. A lower number clicks off as financials move back into the bear camp.  Financials, semi's and commodities (weak crop report) are bearish as measured by the algorithm while all other major sectors, and volatility, favor the bull camp.

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

7/29/11; 10:00 AM EST =

7/26/11; 10:00 AM EST =

7/24/11; 7:00 PM EST =

7/19/11; 9:00 AM EST =

7/17/11; 7:00 PM EST =

7/15/11; 10:00 AM EST =

7/10/11; 7:00 PM EST =

7/8/11; 9:00 AM EST =

7/3/11; 7:00 PM EST =

7/1/11; 10:00 AM EST =

6/30/11; 7:00 PM EST EOM EOQ2 EOH1=

6/30/11; 1:16 PM EST = +18

6/30/11; 12:08 PM EST = +34

6/29/11; 10:41 AM EST = +18

6/29/11; 9:30 AM EST = +4

6/28/11; 10:30 AM EST = -12

6/28/11; 10:00 AM EST = -28; signal line is -30

6/28/11; 9:36 AM EST = -28; signal line is -30; go long 1285; (Benchmark SPX for 2011=+2.2%)(Keybot this trade=-0.6%; Keybot for 2011=+4.8%)(Actual this trade via DOG=-0.8%; Actual for 2011=-0.9%)

STOCK MARKET BULLISH -- LONG

Keybot the Quant remains long; the bullish move continues today with financials now joining the bull side as measured by the algorithm.  The only major sectors that Keybot views as bearish now are the semiconductors and commodities, everything else is in bull mode.

SPX blew up thru 1314, 1316 and 1319 resistance and price held up at 1321 resistance. Thus, 1321 is an important level moving forward.  Further upside resistance is 1323 and 1326, then very strong resistance at 1329. The algorithm is comfortably bullish now.  Caution is warranted since the upside run occurred on the Greece vote, Trichet's hawkish tone boosting the euro and the window dressing run-up to end the month, quarter, Q2, and first half, H1. All these items are likely short-lived positives for the markets.

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

7/29/11; 10:00 AM EST =

7/26/11; 10:00 AM EST =

7/24/11; 7:00 PM EST =

7/19/11; 9:00 AM EST =

7/17/11; 7:00 PM EST =

7/15/11; 10:00 AM EST =

7/10/11; 7:00 PM EST =

7/8/11; 9:00 AM EST =

7/3/11; 7:00 PM EST =

7/1/11; 10:00 AM EST =

6/30/11; 7:00 PM EST EOM EOQ2 EOH1=

6/30/11; 12:08 PM EST = +34

6/29/11; 10:41 AM EST = +18

6/29/11; 9:30 AM EST = +4

6/28/11; 10:30 AM EST = -12

6/28/11; 10:00 AM EST = -28; signal line is -30

6/28/11; 9:36 AM EST = -28; signal line is -30; go long 1285; (Benchmark SPX for 2011=+2.2%)(Keybot this trade=-0.6%; Keybot for 2011=+4.8%)(Actual this trade via DOG=-0.8%; Actual for 2011=-0.9%)

STOCK MARKET BULLISH -- LONG

Keybot remains bullish, idling along unchanged after the mid morning number clicked off.  Big day and big change for the algorithm. The algorithm number is now comfortably 45 points above the signal line, very bullish.  The POMO pumps first boosted the retail sector yesterday, then boosted copper and volatility today.  Trichet's move to 'strong vigilance' pumped the euro higher which in turn pumps commodities and equites higher.  Treasury yields jumped large over the last couple days increasing the 2-10 spread and placing a bid under the financials.

The bulls are further buoyed by the SPX:VIX ratio moving back above 68 and the NYA now back above the 40 week MA nullifying the move into a secular bear market. As if this was not enough, markets are typically buoyant and bull-friendly the two days before a three day holiday weekend, so this hints that markets will be at least sideways or sideways up into the weekend.

SPX 1307 level was tested today.  A rest is in order considering the strong move, but a move up to test 1314 should come next.  All that said, you have to stay on guard since the market can taketh away as fast as it giveth.  The key was going long Monday and Tuesday, if you did not, the major part of the move already occurred.

For tomorrow for the SPX, things keep going the bulls way, all they need is 2 points to get up and over 1309.21 after the open and the buyers will come in force again and the move up will accelerate a few handles.  The market bears, somewhat beat up this week, must push the SPX down 10 points tomorrow to get under a 1297 handle to restart any significant bearishness.  SPX 1298 thru 1307 range represents sideways slop, and would give the SPX some rest time considering the large move up this week.

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

7/29/11; 10:00 AM EST =

7/26/11; 10:00 AM EST =

7/24/11; 7:00 PM EST =

7/19/11; 9:00 AM EST =

7/17/11; 7:00 PM EST =

7/15/11; 10:00 AM EST =

7/10/11; 7:00 PM EST =

7/8/11; 9:00 AM EST =

7/3/11; 7:00 PM EST =

7/1/11; 10:00 AM EST =

6/30/11; 7:00 PM EST EOM EOQ2 EOH1=

6/29/11; 10:41 AM EST = +18

6/29/11; 9:30 AM EST = +4

6/28/11; 10:30 AM EST = -12

6/28/11; 10:00 AM EST = -28; signal line is -30

6/28/11; 9:36 AM EST = -28; signal line is -30; go long 1285; (Benchmark SPX for 2011=+2.2%)(Keybot this trade=-0.6%; Keybot for 2011=+4.8%)(Actual this trade via DOG=-0.8%; Actual for 2011=-0.9%)

STOCK MARKET BULLISH -- LONG

Keybot the Quant remains long; the bulls are running today. Volatility now joined the bull side as well.  SPX testing 1307 resistance; 1314 next. The two days preceding a three day holiday weekend are typically bullish, so the bulls may run it up into the weekend from here.

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

7/29/11; 10:00 AM EST =

7/26/11; 10:00 AM EST =

7/24/11; 7:00 PM EST =

7/19/11; 9:00 AM EST =

7/17/11; 7:00 PM EST =

7/15/11; 10:00 AM EST =

7/10/11; 7:00 PM EST =

7/8/11; 9:00 AM EST =

7/3/11; 7:00 PM EST =

7/1/11; 10:00 AM EST =

6/30/11; 7:00 PM EST EOM EOQ2 EOH1=

6/29/11; 10:41 AM EST = +18

6/29/11; 9:30 AM EST = +4

6/28/11; 10:30 AM EST = -12

6/28/11; 10:00 AM EST = -28; signal line is -30

6/28/11; 9:36 AM EST = -28; signal line is -30; go long 1285; (Benchmark SPX for 2011=+2.2%)(Keybot this trade=-0.6%; Keybot for 2011=+4.8%)(Actual this trade via DOG=-0.8%; Actual for 2011=-0.9%)

STOCK MARKET BULLISH -- LONG

Keybot remains long.  Copper is strong at the start today providing the bulls strength. The bulls are moving comfortably higher now. As measured by the algorithm currently, retail, utilities and copper are bullish while volatility and financials remain bearish.

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

7/29/11; 10:00 AM EST =

7/26/11; 10:00 AM EST =

7/24/11; 7:00 PM EST =

7/19/11; 9:00 AM EST =

7/17/11; 7:00 PM EST =

7/15/11; 10:00 AM EST =

7/10/11; 7:00 PM EST =

7/8/11; 9:00 AM EST =

7/3/11; 7:00 PM EST =

7/1/11; 10:00 AM EST =

6/30/11; 7:00 PM EST EOM EOQ2 EOH1=

6/29/11; 9:30 AM EST = +4

6/28/11; 10:30 AM EST = -12

6/28/11; 10:00 AM EST = -28; signal line is -30

6/28/11; 9:36 AM EST = -28; signal line is -30; go long 1285; (Benchmark SPX for 2011=+2.2%)(Keybot this trade=-0.6%; Keybot for 2011=+4.8%)(Actual this trade via DOG=-0.8%; Actual for 2011=-0.9%)

STOCK MARKET BULLISH -- LONG -- CAUTION

Keybot the Quant joined the long side this morning, as the NYA moved back above the 40 week MA, and the retail sector added extra fuel for the indexes. The algorithm idled along unchanged after the 10:30 AM number.

For tomorrow, focus on the retail sector again, after the open, if RTH, now at 107.51, falls under 107.29, the market bears will be pushing back.  If the RTH remains above 107.29, the market bulls will keep on rockin'.

For the SPX for tomorrow, at this juncture, the market bulls have the wind at their back since the indexes closed near their highs.  Any positive move in futures will lead to the markets continuing the melt-up; attacking resistance at 1300 then 1307.  For the market bears to push back, they must start with lower futures, any number lower, as long as the futures are red, even by pennies. As the day plays out, the market bears would need to touch a 1280 handle to get the negativity rolling along again.  Between 1282 and 1296 is sideways slop.

Of course the Europe/Greece vote overnight carries a lot of weight, so you have to wait until 5 AM EST to find out the results and the affects on the futures.  The run-up today was low volume stuff and feels overdone but time will tell.  Seasonality says Thursday and Friday should be buoyant and bull-friendly, so factor this in as tomorrow plays out into Thursday morning.  Markets remain unstable. Caution is warranted. Get a good nights sleep and set the alarm clock for 5 AM.

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

7/29/11; 10:00 AM EST =

7/26/11; 10:00 AM EST =

7/24/11; 7:00 PM EST =

7/19/11; 9:00 AM EST =

7/17/11; 7:00 PM EST =

7/15/11; 10:00 AM EST =

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7/8/11; 9:00 AM EST =

7/3/11; 7:00 PM EST =

7/1/11; 10:00 AM EST =

6/30/11; 7:00 PM EST EOM EOQ2 EOH1=

6/28/11; 10:30 AM EST = -12

6/28/11; 10:00 AM EST = -28; signal line is -30

6/28/11; 9:36 AM EST = -28; signal line is -30; go long 1285; (Benchmark SPX for 2011=+2.2%)(Keybot this trade=-0.6%; Keybot for 2011=+4.8%)(Actual this trade via DOG=-0.8%; Actual for 2011=-0.9%)

SPX Daily Chart showing Keybot the Quant Algorithm Turns

Keybot flipped to the long side this morning. Stay on guard for a whipsaw since the Europe/Greece vote occurs overnight tonight and also the recent lower volume and high volatility add to the instability of the markets.

The benchmark SPX index is up 2.2% for 2011.  Keybot the Quant algorithm is up 4.8%.  Note how the actual trading percentage is down a percent on the year.  This illustrates the difficulty in execution of Keybot's signals since the markets are typically moving extremely fast when the turns occur and the actual trades can miss better entries by a few pennies. The execution can be improved over time, the key is the robot itself, and Keybot is currently beating the SPX this year, by two times.

Stay on guard for a whipsaw, expecially since the last two turn clusters showed whipsaws on 6/1 and 6/10, so we will have to wait to see what today and tomorrow brings.

STOCK MARKET BULLISH -- LONG -- CAUTION

Keybot remains long. Retail sector now joined the bull side. Caution is warranted. Stay alert for a whipsaw.

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

7/29/11; 10:00 AM EST =

7/26/11; 10:00 AM EST =

7/24/11; 7:00 PM EST =

7/19/11; 9:00 AM EST =

7/17/11; 7:00 PM EST =

7/15/11; 10:00 AM EST =

7/10/11; 7:00 PM EST =

7/8/11; 9:00 AM EST =

7/3/11; 7:00 PM EST =

7/1/11; 10:00 AM EST =

6/30/11; 7:00 PM EST EOM EOQ2 EOH1=

6/28/11; 10:30 AM EST = -12

6/28/11; 10:00 AM EST = -28; signal line is -30

6/28/11; 9:36 AM EST = -28; signal line is -30; go long 1285; (Benchmark SPX for 2011=+2.2%)(Keybot this trade=-0.6%; Keybot for 2011=+4.8%)(Actual this trade via DOG=-0.8%; Actual for 2011=-0.9%)

STOCK MARKET BULLISH -- LONG -- CAUTION

Keybot flips to the long side once the SPX touched 1285.  The indexes jumped higher at that point.  The NYA moved back above the 40 week MA once again stopping the markets from falling into a secular bear market.  Retail is buoyant and helping the bulls but the algorithm now wants to see the RTH above 107.24 and it must be an important level since the RTH is stuck at this level for several minutes now, the bulls and bears fighting it out.

Despite the move to the long side, markets remain unstable, caution is warranted, especially with the wild card of the Europe/Greece vote on austerity over night tonight ahead of tomorrow's session.  The TRIN is elevated which is what you do not expect on a day like this.  It should be under one.

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

7/29/11; 10:00 AM EST =

7/26/11; 10:00 AM EST =

7/24/11; 7:00 PM EST =

7/19/11; 9:00 AM EST =

7/17/11; 7:00 PM EST =

7/15/11; 10:00 AM EST =

7/10/11; 7:00 PM EST =

7/8/11; 9:00 AM EST =

7/3/11; 7:00 PM EST =

7/1/11; 10:00 AM EST =

6/30/11; 7:00 PM EST EOM EOQ2 EOH1=

6/28/11; 10:00 AM EST = -28; signal line is -30

6/28/11; 9:36 AM EST = -28; signal line is -30; go long 1285; (Benchmark SPX for 2011=+2.2%)(Keybot this trade=-0.6%; Keybot for 2011=+4.8%)(Actual this trade via DOG=-0.8%; Actual for 2011=-0.9%)

6/26/11; 7:00 PM EST = -42

6/24/11; 9:45 AM EST = -42

STOCK MARKET BEARISH -- SHORT - CAUTION

Keybot remains short, a calm start to the week results in no algorithm numbers today.  Keybot simply idled along all day with no changes.  The rally was on low volume.  With low volume and elevated volatility, the jello can be pushed around anywhere on the plate, up or down.  Since the algorithm is short, and if the market bulls want to gain any traction, they will need to do it with a higher retail sector.

Retail is the bulls best chance to continue a rally.  If the RTH, now at 106.44, can get above 107.10, today RTH came within 15 cents of this goal, then the broad markets are going to move higher.  If RTH cannot get above 107.10 tmorrow, then the market bears are going to start pushing back hard.

For the SPX tomorrow, starting at 1280.10, if the market bulls can touch the 1285 handle, they will be in clover, the buyers will come in force and the indexes will drive higher; the retail sector will be moving up nicely.  If, however, the market bears provide some push back, which the trend lately does show large up days leading to large down days, and large down days leading to large up days, the bears need to drive the SPX lower to test 1268 support again, all they have to do is get there, and that will be close enough, support will fail and we will be at 1262 in a heart beat, then potentially moving down to the starting year number at 1258.  If the SPX moves thru the 1270 to 1284 range tomorrow with no breakouts either way, that will result in a sideways slop day with neither side happy.  Everyone then goes home to await the Europe/Greece vote result for Wednesday.

Today's action did not mean much. Markets remain unstable.  Caution is warranted. Keybot clicks off a pre-scheduled number tomorrow morning at 10 AM.

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

7/29/11; 10:00 AM EST =

7/26/11; 10:00 AM EST =

7/24/11; 7:00 PM EST =

7/19/11; 9:00 AM EST =

7/17/11; 7:00 PM EST =

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7/10/11; 7:00 PM EST =

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7/3/11; 7:00 PM EST =

7/1/11; 10:00 AM EST =

6/30/11; 7:00 PM EST EOM EOQ2 EOH1=

6/28/11; 10:00 AM EST =

6/26/11; 7:00 PM EST = -42

6/24/11; 9:45 AM EST = -42

STOCK MARKET BEARISH -- SHORT -- CAUTION

Keybot is short to start the new week; the algorithm has remained short thru these two weeks of large point swings and higher volatility.  Most traders have been getting whipsawed on both the long and short sides, throwing up their arms in frustration.  Keybot is a smart robot, at least this appears to be the case for now.

Markets have taken a beating in May and June.  Negativity was high on Friday with the majority of traders not wanting to be long over the weekend--typically a contrarian indicator.  Seasonality says this coming Thursday and Friday should be buoyant and bull-friendly.

For the SPX for Monday, starting at 1268, if the market bears can only push a point or so lower at the open, then the selling will accelerate once again, the SPX will drop down to test 1262, then 1258-1259, the starting number for the year. The bulls need to start the day out with positive futures, perhaps on happy Europe/Greece news, and simply prevent a breach of 1267.24 with all their might.  This way, the bulls can at least stop the bleeding.  Otherwise, if 1267.24 is lost, the market bears have come to play again and Monday will be ugly.

Markets are unstable and remain at the mercy of Europe/Greece news. The algorithm clicks off three pre-scheduled numbers this week, one each on Tuesday, Thursday and Friday.  Watch this asset relationship; Up euro=down dollar=up commodities=up equities, and visa versa, down euro=up dollar=down commodities=down equities.

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

7/29/11; 10:00 AM EST =

7/26/11; 10:00 AM EST =

7/24/11; 7:00 PM EST =

7/19/11; 9:00 AM EST =

7/17/11; 7:00 PM EST =

7/15/11; 10:00 AM EST =

7/10/11; 7:00 PM EST =

7/8/11; 9:00 AM EST =

7/3/11; 7:00 PM EST =

7/1/11; 10:00 AM EST =

6/30/11; 7:00 PM EST EOM EOQ2 EOH1=

6/28/11; 10:00 AM EST =

6/26/11; 7:00 PM EST = -42

6/24/11; 9:45 AM EST = -42

6/23/11; 3:51 PM EST = -28; signal line is -30 but algorithm says stay short

6/23/11; 9:31 AM EST = -42

STOCK MARKET BEARISH -- SHORT -- CAUTION

Keybot remains short; the algorithm clicking off a number a short time ago.  NYA is under the 40 week MA and SPX:VIX is under 68 paving the way for the bears early in the session.  The high TRIN verifies the early selling pressure. If the TRIN continues to use the 1.8-2.0 as a ceiling and falls from here back towards one, then the broad markets will be buoyant the remainder of the session.

RTH fell over a point after the open so the broad market bulls did not come to play today.  Watch RTH 107.34 area today; RTH is now below here favoring the bears.

SPX bounced off 1270 support. SPX 200 day MA at 1263 continues to hold. Markets remain unstable.

7/10/11; 7:00 PM EST =

7/8/11; 10:00 AM EST =

7/3/11; 7:00 PM EST =

6/30/11; 7:00 PM EST EOM =

6/28/11; 10:00 AM EST =

6/26/11; 7:00 PM EST =

6/24/11; 9:45 AM EST = -42

6/23/11; 3:51 PM EST = -28; signal line is -30 but algorithm says stay short

6/23/11; 9:31 AM EST = -42

6/22/11; 2:41 PM EST = -28; signal line is -30 but algorithm says stay short

6/22/11; 1:30 PM EST = -14; signal line is -30 but algorithm says stay short

6/22/11; 1:08 PM EST = -28; signal line is -30 but algorithm says stay short

6/22/11; 12:52 PM EST = -14; signal line is -30 but algorithm says stay short

6/22/11; 12:01 PM EST = -28; signal line is -29 but algorithm says stay short

6/22/11; 11:03 AM EST = -14; signal line is -28 but algorithm says stay short

6/22/11; 9:30 AM EST = -28

6/21/11; 2:44 PM EST = -12; signal line is -28 but algorithm says stay short

6/21/11; 9:30 AM EST = -28; signal line is -28

STOCK MARKET BEARISH -- SHORT -- CAUTION

Keybot remains short. The algorithm clicked off a number before yesterday's close but it had no impact on direction.  Keybot wants to go long but the algorithm rules are holding it back.  We will see if this changes today. The keys are retail and the NYA.  If RTH, now at 107.51, favoring bears, can float up only four pennies to get above 107.55, then the broad market bulls are going to be in a strong mood today.  The NYA is above the 40 week MA favoring bulls so watch to see if this is maintained. These two items will forecast the broad market direction today.

In addition, the SPX:VIX ratio is under 68, only by a buck or so, but under none-the-less, which says a short-the-rally mode exists now.  If the ratio goes back above 68, that will change things and place the market bulls back in firm control.

For the SPX today, if the market bulls touch 1287, the day will be their's.  The bears need to push 20 points lower if they expect to reignite yesterday's negativity.  If the bulls cannot push the measely three points higher to 1287, then the markets will languish into the weekend, probably with a downward bias. Durable Goods and GDP coming soon and will set the tone today.  Markets remain at the mercy of the Europe/Greece news.

Markets remain unstable, caution is warranted.

7/10/11; 7:00 PM EST =

7/8/11; 10:00 AM EST =

7/3/11; 7:00 PM EST =

6/30/11; 7:00 PM EST EOM =

6/28/11; 10:00 AM EST =

6/26/11; 7:00 PM EST =

6/23/11; 3:51 PM EST = -28; signal line is -30 but algorithm says stay short

6/23/11; 9:31 AM EST = -42

6/22/11; 2:41 PM EST = -28; signal line is -30 but algorithm says stay short

6/22/11; 1:30 PM EST = -14; signal line is -30 but algorithm says stay short

6/22/11; 1:08 PM EST = -28; signal line is -30 but algorithm says stay short

6/22/11; 12:52 PM EST = -14; signal line is -30 but algorithm says stay short

6/22/11; 12:01 PM EST = -28; signal line is -29 but algorithm says stay short

6/22/11; 11:03 AM EST = -14; signal line is -28 but algorithm says stay short

6/22/11; 9:30 AM EST = -28

6/21/11; 2:44 PM EST = -12; signal line is -28 but algorithm says stay short

6/21/11; 9:30 AM EST = -28; signal line is -28

STOCK MARKET BEARISH -- SHORT -- CAUTION

Keybot remains short, clicking a number off after the open, moving the algorithm lower. The SPX:VIX ratio is under 68, as long as that remains, the sell off will be large numbers today, and weakness will continue.  That said, the neutral TRIN, now at 1.13, has oscillated between 0.9 and 1.1 so far in the session, definitely not the high number you would expect during a big selling event like the open was, therefore, this hints that the markets want to moderate into buoyancy again. If you see the TRIN increase today, up thru 1.5, 2.0, well, the selling will be strong, but, so far this does not appear to be the case.

The NYA dropped under the 40 week MA again to signal a return to a secular bear market for the indexes. Utes now demand very close watching.  UTIL now with a 422 handle and within three points of hitting the danger 418 level for this week.  If UTIL falls below 418 at anytime today or tomorrow, the markets are in serious trouble and will fall substantially. Barring a failure of the UTIL 418 level, markets should moderate sideways. Watch the TRIN, now at 1.18.

7/10/11; 7:00 PM EST =

7/8/11; 10:00 AM EST =

7/3/11; 7:00 PM EST =

6/30/11; 7:00 PM EST EOM =

6/28/11; 10:00 AM EST =

6/26/11; 7:00 PM EST =

6/23/11; 9:31 AM EST = -42

6/22/11; 2:41 PM EST = -28; signal line is -30 but algorithm says stay short

6/22/11; 1:30 PM EST = -14; signal line is -30 but algorithm says stay short

6/22/11; 1:08 PM EST = -28; signal line is -30 but algorithm says stay short

6/22/11; 12:52 PM EST = -14; signal line is -30 but algorithm says stay short

6/22/11; 12:01 PM EST = -28; signal line is -29 but algorithm says stay short

6/22/11; 11:03 AM EST = -14; signal line is -28 but algorithm says stay short

6/22/11; 9:30 AM EST = -28

6/21/11; 2:44 PM EST = -12; signal line is -28 but algorithm says stay short

6/21/11; 9:30 AM EST = -28; signal line is -28

STOCK MARKET BEARISH -- SHORT -- CAUTION

Keybot the Quant remains short. The broad markets are exhibiting indecisive, odd behavior, some of the strangest behavior the algorithm has ever seen.  Six continuous numbers where the algorithm is set up to go long but keeps getting held back by other algorithmic rules. Very interesting indeed and requires close monitoring.

Retail and volatilty both went the bears way today, hence the late day sell off.

For the SPX tomorrow, the market bulls have to reach up to touch 1298-1299, otherwise they got nothing.  The market bears, however, have an easy path ahead if they decide to push.  The bears only need to drop the SPX 33 measely pennies tomorrow, under 1286.79, if they can, the indexes will accelerate the selling and you will see some support levels hit, 1286, 1282, 1279.  Therefore, any hint of red futures, even only a few pennies, will be very bearish in the morning. Seasonality says this week is down 18 of the last 20 times.  Also, a healthy selloff on Wednesday is usually met with further weakness Thursday morning.  Watch out for possible index buoyancy prior to lunch time tomorrow.

7/10/11; 7:00 PM EST =

7/8/11; 10:00 AM EST =

7/3/11; 7:00 PM EST =

6/30/11; 7:00 PM EST EOM =

6/28/11; 10:00 AM EST =

6/26/11; 7:00 PM EST =

6/22/11; 2:41 PM EST = -28; signal line is -30 but algorithm says stay short

6/22/11; 1:30 PM EST = -14; signal line is -30 but algorithm says stay short

6/22/11; 1:08 PM EST = -28; signal line is -30 but algorithm says stay short

6/22/11; 12:52 PM EST = -14; signal line is -30 but algorithm says stay short

6/22/11; 12:01 PM EST = -28; signal line is -29 but algorithm says stay short

6/22/11; 11:03 AM EST = -14; signal line is -28 but algorithm says stay short

6/22/11; 9:30 AM EST = -28

6/21/11; 2:44 PM EST = -12; signal line is -28 but algorithm says stay short

6/21/11; 9:30 AM EST = -28; signal line is -28

6/19/11; 7:00 PM EST = -42; signal line is -28

6/17/11; 12:17 AM EST = -42

6/17/11; 11:12 AM EST = -28; signal line is -27

6/17/11; 11:02 AM EST = -42

6/17/11; 10:47 AM EST = -28; signal line is -26

6/17/11; 10:23 AM EST = -42

6/17/11; 10:00 AM EST = -28; signal line is -25

6/17/11; 9:32 AM EST = -28

6/16/11; 9:00 AM EST = -42

6/15/11; 11:38 AM EST = -42

6/15/11; 11:31 AM EST = -28

6/15/11; 11:20 AM EST = -12; signal line is -23 but algorithm says stay short

6/14/11; 9:30 AM EST = -28; signal line is -24

6/13/11; 3:35 PM EST = -42

6/13/11; 1:59 PM EST = -28; signal line is -23

6/13/11; 11:51 AM EST = -42

6/12/11; 7:00 PM EST = -28

6/10/11; 1:54 PM EST = -28; signal line is -21

6/10/11; 1:45 PM EST = -42

6/10/11; 10:06 AM EST = -28; signal line is -18; go short 1277; (Benchmark SPX for 2011=+1.5%)(Keybot this trade=-1.0%; Keybot for 2011=+5.4%)(Actual this trade via DIA=-1.1%; Actual for 2011=-0.1%)

STOCK MARKET BEARISH -- SHORT -- CAUTION

Keybot remains short. Volatility came down.  Watch VIX 17.91 level, now at 17.86 so market bulls are favored.  Watch RTH 107.55 level, now at 107.46 favoring bears. If these two line out bullish and the SPX gets back above 1298, Keybot should finally turn long, otherwise, more of the same. Markets remain unstable.

7/3/11; 7:00 PM EST =

7/1/11; 10:00 AM EST =

6/30/11; 7:00 PM EST EOM =

6/28/11; 10:00 AM EST =

6/26/11; 7:00 PM EST =

6/22/11; 11:03 AM EST = -14; signal line is -28 but algorithm says stay short

6/22/11; 9:30 AM EST = -28

6/21/11; 2:44 PM EST = -12; signal line is -28 but algorithm says stay short

6/21/11; 9:30 AM EST = -28; signal line is -28

6/19/11; 7:00 PM EST = -42; signal line is -28

6/17/11; 12:17 AM EST = -42

6/17/11; 11:12 AM EST = -28; signal line is -27

6/17/11; 11:02 AM EST = -42

6/17/11; 10:47 AM EST = -28; signal line is -26

6/17/11; 10:23 AM EST = -42

6/17/11; 10:00 AM EST = -28; signal line is -25

6/17/11; 9:32 AM EST = -28

6/16/11; 9:00 AM EST = -42

6/15/11; 11:38 AM EST = -42

6/15/11; 11:31 AM EST = -28

6/15/11; 11:20 AM EST = -12; signal line is -23 but algorithm says stay short

6/14/11; 9:30 AM EST = -28; signal line is -24

6/13/11; 3:35 PM EST = -42

6/13/11; 1:59 PM EST = -28; signal line is -23

6/13/11; 11:51 AM EST = -42

6/12/11; 7:00 PM EST = -28

6/10/11; 1:54 PM EST = -28; signal line is -21

6/10/11; 1:45 PM EST = -42

6/10/11; 10:06 AM EST = -28; signal line is -18; go short 1277; (Benchmark SPX for 2011=+1.5%)(Keybot this trade=-1.0%; Keybot for 2011=+5.4%)(Actual this trade via DIA=-1.1%; Actual for 2011=-0.1%)