STOCK MARKET BEARISH -- SHORT -- CAUTION

Keybot the Quant is short thru the weekend. Quite a wild week transpired as we watched commodities and copper collapse, semiconductors collapse, and then yesterday with financials collapsing then volatility spiking; the bears are growling strongly. The drop of XLF thru 15.18 was very significant, watch this like a hawk moving forward. Volatility and the retail sector should figure prominently next week but first thing is first, the quant will print the Sunday number tomorrow and at that time the new trading week sectors and levels of interest, as well as SPX levels, can be posted.  The market bears are in control.

Caution is required moving forward. The strength in the utilities sector recently hints that although further downside exploration is likely, the markets will also likely recover and move back upwards to the 1400-ish or more levels again due to the strength in utes. For a sustained downside push in markets to occur, the utes should lead or at least move coincidentally. UTIL was up yesterday. When/if the markets recover in the days/weeks ahead, watch UTIL. If you see continued strength with UTIL then the bulls will start to assemble another market upside party. If UTIL rolls over, that will hint that the market downside move will be sustainable, extended and most likely dramatic.

5/6/12; 7:00 PM EST =

5/4/12; 10:05 AM EST = +0; signal line +26

5/4/12; 9:55 AM EST = +14; signal line is +27; go short 1382; (Benchmark SPX for 2012  = +9.9%)(Keybot this trade = -0.4%; Keybot for 2012 = +1.6%)(Actual this trade = -1.0%; Actual for 2012 = +2.0%)