STOCK MARKET BEARISH -- SHORT -- CAUTION

Keybot the Quant is on the short side going into the Tuesday session. The algo flipped to the bear side shortly after yesterday's open. Watch XLF 15.10 (now bearish at 15.08 but only by two cents), VIX 18.50 (now bearish at 18.97), RTH 41.00 (now bullish at 41.25) and SPX:VIX ratio 68 (now bullish at 72.06).   Any juxstaposition of these four characters will push the broad indexes in that respective direction.  The futures are up favoring a recovery bounce at the open so the RTH and VIX require close watching.

Even with the bearish sectors above turning back to the bull side, the more important fight will be at the SPX 1379-1380 level with the 50-day MA at 1379.80.  If the bulls push higher and a 1379 prints, the broad indexes should accelerate upwards slicing up thru the 50-day MA and moving higher.  The 1379-1380 resistance level is very important today and a move above will likely cause Keybot to flip back to the long side.  The SPX begins the day at 1367. The bears need to drop under 1359 to accelerate the downside. A move thru 1360-1377 is sideways action today.

A pre-scheduled number prints at 10 AM so the market action can be updated at that time.

4/29/12; 7:00 PM EST =

4/27/12; 10:00 AM EST =

4/24/12; 10:00 AM EST =

4/23/12; 9:57 AM EST = +0; signal line is +14; go short 1362; (Benchmark SPX for 2012  = +8.3%)(Keybot this trade = -1.6%; Keybot for 2012 = +3.8%)(Actual this trade = -1.6%; Actual for 2012 = +5.1%)

4/23/12; 9:37 AM EST = +0; signal line is +13 but the algorithm says stay long

4/22/12; 7:00 PM EST = +30; signal line is +12