STOCK MARKET BEARISH -- SHORT -- CAUTION

Keybot remains bearish and continues to idle quietly for three days now with no algorithm numbers clicking off. A pre-scheduled number will print at 10 AM today. Yesterday was interesting to see how the bears pushed lower to fill that 1307 gap as projected.

The bear and bull camps are firmly entrenched.  Looking at some of the major sectors Keybot scans, the financials, semiconductors, commodities and volatilty are firmly bearish while sectors such as utilities, retail and copper are firmly bullish. We will see if the positive GOOG earnings will place a bid under tech and the broad market, or not.

For the SPX today, the bears have the wind at their backs since they only need to push lower by two points to get the ball rolling down hill at an accelerated pace towards 1300 and 1298. If the SPX loses the 1306.50 area, several handles will be lost in quick order.  The bulls have a formidable task ahead today, they need to attain a 1326 handle to reverse the selling in any substantial way.  Thus, the bulls simply need to prevent that move to 1306.50 so they can run out the clock into the weekend. A move thru 1307-1325 is sideways action with neither side showing strength.

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 =

7/11/11; 10:34 AM EST = +4; signal line is +12; go short 1324; (Benchmark SPX for 2011=+5.3%)(Keybot this trade=+3.0%; Keybot for 2011=+7.8%)(Actual this trade via IWM=+3.7%; Actual for 2011=+2.8)