STOCK MARKET BEARISH -- SHORT -- CAUTION

Keybot the Quant remains short. The algo was active yesterday but despite the market up day, the model chugs along on the short side unimpressed. The caution flag is waving again since the quant is now fixated on four areas; retail, financials, volatility and the NYA. If two of these decide to turn bullish, the quant may be agreeable to flipping long. Watch RTH 41.29 (note that the algo bumped up this level of interest by two cents as compared to yesterday), XLF 14.35, VIX 18.90 and NYA 7688. All four are bearish creating market negativity. If any of the four turn bullish, they will create buoyancy in the broad indexes.

For the SPX today, starting at 1332, the bulls only need three tiny points, to touch the 1335 handle, and the upside will accelerate strongly. Alas, however, the futures are weak at this writing.  The bears need to push under 1321, if so, the downside will accelerate for markets. A move thru 1322-1333 is sideways action. Global markets look to the Euro Summit today and tomorrow for answers. For now, the bears continue to drive the bus. Note that the SPX is at the same level where the quant went short one week ago.

7/1/12; 7:00 PM EST EOM EOQ2 EOH1 =

6/29/12; 10:00 AM EST =

6/27/12; 3:54 PM EST = -30 signal line +0

6/27/12; 3:20 PM EST = -14 signal line +2

6/27/12; 1:23 PM EST = -30 signal line +3

6/27/12; 10:01 AM EST = -14 signal line +4