STOCK MARKET BEARISH -- SHORT

Keybot the Quant remains short ahead of the Wednesday session.  AAPL missed earnings estimates after the close this evening and will create market negativity tomorrow. Today, the VIX immediately moved above 18.68, followed by the RTH losing 41.90, so this potent bear fuel sent the broad indexes lower.  For Wednesday, watch RTH 41.90, now at 41.86, bearish, but only by a smidge. Markets will continue selling off if the RTH stays under 41.90. If the RTH moves above 41.90, the markets will recover.  Watch CRB 293.00, now bullish at 296.37.  If the CRB loses 293 tomorrow morning, the broad markets will take another leg lower.

For the SPX starting at 1338, the bears need to drop below 1329 to create an acceleration move downwards. This is a drop of about nine points so watch the futures overnight especially in light of the AAPL debacle. The bulls are simply trying to stop the bleeding by preventing the nine point drop in the SPX while moving the RTH back above 41.90.  A move thru SPX 1331-1350 is sideways action. Note that the caution flag was rolled up and put away.  The difference between the algo number and the signal line is 44 points so the market bears are cruising along without a care in the world, enjoying a cigar, with their feet up on the dashboard.

7/29/12; 7:00 PM EST =

7/27/12; 10:00 AM EST =

7/24/12; 11:59 AM EST = -16; signal line is +28

7/24/12; 9:30 AM EST = +0; signal line is +30

7/23/12; 3:25 PM EST = +14; signal line is +31