STOCK MARKET BEARISH -- SHORT -- CAUTION

Keybot the Quant remains short ahead of the Thursday session.  The VIX stayed above the 17.7 level all day long which shows the market bears in control.  The algorithm idled all day long but did not click off any numbers. Today was a bull-bear fight, or standoff, the TRIN moving on each side of 1.0 verifying the sideways struggle. The SPX took turns at the 1279, 1282 and 1286 support/resistance levels.

For tomorrow for the SPX, if price drops only two points after the opening bell, and falls thru the 1277.42 level, the selling will accelerate targeting the 1275 gap fill and 1270 support.

If the market bulls can keep it together overnight, and keep the futures green, and move the SPX up to touch a 1287 handle afte rthe open, then the buyers will flood into the markets and buying will accelerate.

The SPX:VIX ratio is only ten cents above the 68 level. If this fails, the indexes will sell off large tomorrow.  If the ratio stays above 68, the bulls are fighting back and will create buoyancy under the broad markets.

High drama continues, markets remain unstable, caution is warranted.

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

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

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

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

6/24/11; 10:00 AM EST =

6/19/11; 7:00 PM EST =

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

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

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

6/7/11; 3:29 PM EST = -28

6/7/11; 1:30 PM EST = -14; signal line is -10

6/7/11; 1:22 PM EST = -28

6/7/11; 1:04 PM EST = -14

6/7/11; 11:25 AM EST = -28

6/7/11; 10:05 AM EST = -14

6/6/11; 12:31 PM EST = -28

6/6/11; 12:14 PM EST = -14