STOCK MARKET BEARISH -- SHORT -- CAUTION

Keybot the Quant flips to the bear side at SPX 1828 in the final minutes of trading yesterday. As always, stay alert for a potential whipsaw move today or tomorrow. Markets deteriorated into the close with the financials collapsing triggering the strong negativity. As yesterday played out, the higher volatility set the course lower for equities from the start. Even though the broad indexes recovered and threatened new all-time highs, the VIX remained in the bear camp. At about lunch time, copper fell through the JJC 39.92 line in the sand which created negativity and the afternoon weakness. In the final minutes, the banks fell apart. The algorithm program gains +3.5% on the last trade and the actual trading gains a touch over +9% placing the actual trading results well into the positive for 2014 thus far. Keybot cycled out of QLD and entered TWM.

For Thursday, the bulls need either XLF 21.42, JJC 39.92 and/or RTH 58.70 to stop the downward market move and stabilize the indexes. Any 1 of the 3 would do. The bears will be trying to push all 3 parameters lower to increase the negativity. For the SPX starting at 1829, the bears need to push under 1827 and a downside acceleration will occur targeting sub 1820 numbers. A move through 1828-1846 is sideways action. The bulls need to recover yesterday's down move and push above 1847 to regain their mojo, a formidable task, but not impossible. The bulls will instead be focused on pumping the financial, copper and retail sectors higher. The bears are driving the bus again.

2/23/14; 7:00 PM EST =

2/19/14; 3:52 PM EST = +16; signal line is +22; go short 1828; (Benchmark SPX for 2014 = -1.1%)(Keybot this trade = +3.5%; Keybot for 2014 = +3.5%)(Actual this trade = +9.1%; Actual for 2014 = +7.8%)

2/19/14; 12:07 PM EST = +32; signal line is +20

2/19/14; 9:36 AM EST = +48; signal line is +18

2/19/14; 9:00 AM EST = +62; signal line is +15

2/18/14; 12:32 PM EST = +62; signal line is +13

2/18/14; 10:39 AM EST = +48; signal line is +11

2/18/14; 9:51 AM EST = +32; signal line is +10

2/16/14; 7:00 PM EST = +46; signal line is +8

2/14/14; 10:00 AM EST = +46; signal line is +7

2/13/14; 2:50 PM EST = +46; signal line is +6

2/13/14; 2:34 PM EST = +32; signal line is +4

2/13/14; 1:13 PM EST = +46; signal line is +3

2/12/14; 10:09 AM EST = +32; signal line is +1

2/12/14; 9:58 AM EST = +46; signal line is -2

2/11/14; 3:37 PM EST = +32; signal line is -4

2/11/14; 3:10 PM EST = +46; signal line is -5

2/11/14; 11:23 AM EST = +32; signal line is -7

2/10/14; 1:07 PM EST = +16; signal line is -9

2/10/14; 12:17 PM EST = +0; signal line is -10

2/10/14; 10:48 AM EST = +16; signal line is -11

2/9/14; 7:00 PM EST = +0; signal line is -13

2/7/14; 9:00 AM EST = +0; signal line is -13

2/6/14; 10:32 AM EST = +0; signal line is -14; go long 1767; (Benchmark SPX for 2014 = -3.8%)(Keybot this trade = +0.0%; Keybot for 2014 = +0.0%)(Actual this trade = -0.1%; Actual for 2014 = -1.3%)