STOCK MARKET BEARISH -- SHORT -- CAUTION

Keybot the Quant is short going into the new week of trading. The semiconductors went over the falls on Friday and reinforced a strong bearish stance.  The three sectors the algo is tracking right now are copper, volatilty and utilities.  Watch JJC 46.33, now at 45.98 contributing bearishly to markets. Watch VIX 16.30, now at 17.06. As long as JJC remains under 46.33 and VIX over 16.30, the broad indexes will remain weak. Watch UTIL 485.67 which is a number that will stay in place all week long. UTIL is 483.76 which is on the bearish side so at the opening bell, Keybot will actually click lower than it is now, forecasting move market bearishness ahead.  Watch this as a significant market direction tool for Monday.  If UTIL stays under 485.67, it does not matter what the broad indexes are doing, they will weaken.  Conversely, if UTIL moves above 485.67, the recovery rally bounce will be confirmed for markets.

For the SPX beginning on top of strong support and the 50-day MA at 1433, the bears only need three negative points, to push down thru 1430, and the market downside will accelerate. The bulls are simply trying to stop the bleeding and their first step will be to push UTIL above 485.67.  A move thru SPX 1431-1456 is sideways action for Monday.  Remain cautious. Europe news will move markets sharply. CAT earnings will set the tone for trading.  If UTIL remains under 485.67, the caution flag will probably be removed since the bears will be on cruise control. Keybot prints one pre-scheduled number this week on Friday morning.

10/28/12; 7:00 PM EST =

10/26/12; 10:00 AM EST =

10/21/12; 7:00 PM EST = +30; signal line is +52

10/19/12; 12:15 PM EST = +30; signal line is +53

10/19/12; 11:49 AM EST = +44; signal line is +55; go short 1442; (Benchmark SPX for 2012 = +14.6%)(Keybot this trade = -0.3%; Keybot for 2012 = +15.3%)(Actual this trade = -0.7%; Actual for 2012 = +8.6%)