STOCK MARKET BEARISH -- SHORT -- CAUTION

Keybot the Quant is short as the new week of trading begins.Watch to see if the SOX stays under 382 influencing the markets negatively.  Likewise the CRB 297 level. Likewise JJC 44.30. The quant appears most interested in financials, volatility and the NYA. Thus, focus on XLF 14.40, now at 14.47, only seven pennies above which influences markets positively, and VIX 18.75, now at 17.10, influencing the markets positively, and NYA 7717, now at 7757, influencing the markets positively. If the XLF drops under 14.40 or the VIX moves above 18.75, or the NYA falls under 7717, the markets will sell off strongly. The extent of market selling is determined by how many of the three, if any, turn to the bearish side.

For the SPX for Monday, starting at 1355, in the center of Friday's range, the bulls need to touch the 1367 handle, if so, the upside will accelerate. The market bears need to push under 1348 to accelerate the downside. A move thru 1349-1365 is sideways action. The algo prints only one pre-scheduled number this week on Friday morning. Stay on guard for a potential whipsaw move that would occur during Monday's session or at Tuesday's open. As soon as the opening bell rings, XLF 14.40 will dictate the story. NYA 7717 is also key.

7/15/12; 7:00 PM EST =

7/13/12; 10:00 AM EST =

7/8/12; 7:00 PM EST = +30; signal line is +35

7/6/12; 9:57 AM EST = +30; signal line is +34; go short 1354; (Benchmark SPX for 2012  = +7.6%)(Keybot this trade = +0.2%; Keybot for 2012 = +8.3%)(Actual this trade = +0.5%; Actual for 2012 = +6.9%)