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