STOCK MARKET BEARISH -- SHORT -- CAUTION

Keybot the Quant is short as of this morning.  The weak utilities bit into the broad indexes. The quant is now tracking four key parameters; UTIL 481.36 (now bearish), VIX 16.90 (now bullish), JJC 46.35 (now bullish) and RTH 44.50 (now bullish).  Very simply, the bulls need to move UTIL above 481.36.  The bears need to either push VIX above 16.90 or JJC under 46.35 or RTH under 44.50. If two of these three fail, that will correspond to 20 handles of downside on the SPX and all three turning bearish would put the SPX in the low 1400's. The action over the coming days is important.

For the SPX, starting at 1441, closing at the lows, the bears have the advantage.  A tiny smidge of negative futures is all that is needed to initiate a downside acceleration when the opening bell rings.  The bulls need to retrace the down move today to touch 1456, a difficult task but it can happen.  This would place the bulls back in business and launch an acceleration move higher to 1460 in quick order.  A move thru 1442-1455 is sideways action. Markets remain unstable. The four parameters listed above are very important, especially UTIL 481.36. Stay alert for a potential whipsaw.

10/14/12; 7:00 PM EST =

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

10/9/12; 10:42 AM EST = +44; signal line is +57; go short 1452; (Benchmark SPX for 2012 = +15.4%)(Keybot this trade = -0.1%; Keybot for 2012 = +15.2%)(Actual this trade = -0.1%; Actual for 2012 = +8.8%)

10/8/12; 9:37 AM EST = +44; signal line is +58 but algorithm says stay long