STOCK MARKET BEARISH -- SHORT -- CAUTION

Keybot is short to start the new trading week. The algo number is only 10 points away from the signal line so it will not take much to get the quant to flip to the long side. Volatilty is important at the open tomorrow. If the VIX, now at 30.16, drops under 30, only 16 pennies lower, the market bulls will have the upper hand and Keybot will be on the verge of flipping to the long side.  If SPX touches 1261 with VIX under 30, the market bulls will have a party with the upside rockin'. If VIX drops under 30 but the SPX cannot touch 1261, the market bulls do not have as much strength as it may seem. If VIX stays above 30 and the SPX drops under 1239, the markets will tumble lower quickly and the market bears will have the party. A move thru SPX 1240-1260 is sideways action.

Also watch financials, XLF, the 12.95 level. If XLF remains above, the markets will continue to favor buoyancy, dropping under 12.95 will signal trouble on the way. Thus, to keep it simple, watch VIX 30, SPX 1261 and 1239, and XLF 12.95. These three compadres will dictate market direction tomorrow. Keybot prints only one pre-scheduled number this week on Friday morning, Veteran's Day.

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

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

11/27/11; 7:00 PM EST =

11/25/11; 10:00 AM EST =

11/20/11; 7:00 PM EST =

11/17/11; 9:00 AM EST =

11/13/11; 7:00 PM EST =

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

11/6/11; 7:00 PM EST = -8; signal line is +2

11/4/11; 9:00 AM EST = -8; signal line is +1

11/2/11; 9:30 AM EST = -8; signal line is +1

11/1/11; 3:46 PM EST = -24; signal line is +1

11/1/11; 9:30 AM EST = -8; signal line is 0; go short 1233; (Benchmark SPX for 2011=-2.0%)(Keybot this trade=-0.4%; Keybot for 2011=+26.0%)(Actual this trade via DIA=-0.9%; Actual for 2011=+35.6%)