STOCK MARKET BEARISH -- SHORT -- CAUTION

Keybot the Quant is on the short side. The program was modified this morning; the first programming changes in months. Changes do not materially impact the posted numbers. Everything is back on line now and operating.

Retail, RTH, and utilities, UTIL, remain the key sectors to monitior.  The algo now tracking RTH 103.75 and last print is 103.34, thus market bearish. Keep watching, however, since a Friday end-of-quarter short-covering rally can change this quickly. UTIL last print 437.27 well above the 426.79 key level for this weeks trading, thus, the utes are single-handedly sector-wise, supporting the markets from the bullish perspective. If RTH moves above 103.75, the market bulls will try to run it up into the close, if RTH stays under 103.75, broad market weakness continues. SPX 1139 handle is vital, it tested twice in the last half hour, a third time may fail, if so, indexes will lose several handles quickly.

10/9/11; 7:00 PM EST =

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

10/2/11; 7:00 PM EST EOM EOQ3 =

9/30/11; 12:11 PM EST = -56; signal line is -42

9/30/11; 11:30 AM EST = -40; signal line is -42 but algorithm says stay short

9/30/11; 10:00 AM EST = -56; signal line is -43

9/30/11; 9:30 AM EST = -56; signal line is -43

9/29/11; 2:10 PM EST = -56; signal line is -45; go short 1146; (Benchmark SPX for 2011=-8.9%)(Keybot this trade=-0.2%; Keybot for 2011=+23.9%)(Actual this trade via DIA=+1.1%; Actual for 2011=+35.2%)