STOCK MARKET BEARISH -- SHORT -- CAUTION

Keybot the Quant remains short moving into the Monday session.  Volatility and financials will tell the tale at the open.  If VIX stays above 14.25 and the XLF drops under 17.95, the markets will be selling off. If XLF stays above 17.95 and the VIX drops under 14.25, the bulls will be pushing markets strongly higher.  If the VIX stays above 14.25, and the XLF stays above 17.95, status quo, the markets will float along sideways. If the VIX drops under 14.25, Keybot the Quant may be in position to flip to the long side.

For the SPX starting at 1555, the bulls only need to touch 1556, barely one point higher, and an upside acceleration will occur. Therefore, the futures overnight are key. Any slight smidge of positivity in the futures overnight will indicate a bullish start to the week. The bears need to push under 1540 to accelerate the downside. This can only be accomplished if the financials (XLF) fail as described above.  A move through 1541-1555 is sideways action for Monday. Markets remain erratic and unstable.

4/28/13; 7:00 PM EST =

4/26/13; 10:00 AM EST =

4/21/13; 7:00 PM EST = +16; signal line is +32

4/19/13; 10:07 AM EST = +16; signal line is +32