STOCK MARKET BEARISH -- SHORT -- CAUTION

Keybot the Quant is short to start the Friday session but the happy news from Europe shows futures markets up large. In the final minutes of yesterday's session, the algo number ticked upwards now only 12 points from the signal line. With the gains currently shown in the futures markets it is very likely that Keybot will flip to the long side at the open. The financials sector, XLF, is important and should move above the important 14.35 level the quant is currently identifying. The VIX 18.90 level is very important at the opening bell as well. Also, watch the NYA 7688 level, if the NYA moves above this will confirm that the bulls have taken over control.

For the SPX today, the 1332 level is important and the futures at this writing indicate that the bulls will blow up thru here without any trouble at all. A turn to the long side appears imminent. A pre-scheduled number prints at 10 AM and the model may already be on the long side by then. A very active open and first hour is anticipated for the algo. 

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

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

6/28/12; 3:54 PM EST = -14 signal line -2

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