STOCK MARKET BEARISH -- SHORT -- CAUTION

Keybot the Quant remains short to start the Thursday trading session. Today is the EOM with a brutal May drawing to a close. Yesterday's trading drama centered around the retail sector where RTH would not commit to neither bull nor bear oscillating to and fro all day long finishing one single point on the bull side.  Watch RTH 41.16 very closely at the opening bell (now at 41.17). Above and the day belongs to the bulls, below and the day belongs to the bears. As RTH goes, so goes the markets today.

Note that Keybot is on the ragged edge of moving back to the long side.  The algo number is smack dab on top of the signal line after printing six numbers yesterday. If the algo number moves higher, and other internal programming rules for the quant are satisfied, Keybot will flip long. The next couple days are extremely important for the markets. For now, Keybot remains inthe bear camp.

For the SPX starting at 1313, the bears only need to see two points lower, to push the SPX under 1311, and the markets will accelerate lower.  The bulls need to recover yesterday's losses to reignite upside momo, a formidable task.  Instead, bulls will focus on keeping the RTH elevated above 41.16 which will keep the broad indexes elevated.  A move thru SPX 1312-1330 is sideways action today.  A pre-scheduled number prints after the close this evening that will button up the month of May then another pre-scheduled number prints Friday morning before the open. Extreme caution is warranted as the bulls and bears fight it out for market control.

6/3/12; 7:00 PM EST =

6/1/12; 9:00 AM EST =

5/31/12; 7:00 PM EST EOM =

5/30/12; 3:25 PM EST = -14 signal line -14

5/30/12; 3:15 PM EST = -30 signal line -14

5/30/12; 12:47 PM EST = -14 signal line -13

5/30/12; 12:04 PM EST = -30 signal line -13

5/30/12; 11:35 AM EST = -14 signal line -12

5/30/12; 10:33 AM EST = -30 signal line -12

5/29/12; 10:00 AM EST = -14 signal line -10