STOCK MARKET BEARISH -- SHORT -- CAUTION -- TURN MAY BE IMMINENT

Keybot the Quant flips to the short side yesterday afternoon in a very jumpy tape. The move is a candidate for a whipsaw today since the S&P futures are strongly higher this morning at +4. Financials weaken and volatility jumps higher to create market weakness. The surprise is the weakness in semiconductors. But as the session ends yesterday, semiconductors recover and volatility drops to fuel the late-day rally.

Keybot flips short at the same entry on the long side a couple weeks ago at SPX 1859 so the algo program is flat over the last trade. The actual trade is flat. Keybot cycles out of SPY into DOG continuing with single ETF's due to the whipsaw sideways nature of markets currently.

For Tuesday, the bulls receive the upside go signal with XLF 21.80 and/or RTH 58.90. If markets recover as the futures indicate, but neither of these parameters turn bullish, markets will reverse and sell off. If one or both of these parameters turn bullish after the opening bell, Keybot will likely immediately flip back to the long side. The bears need to push SOX under 567.10, JJC under 37.50 and/or VIX above 14.65 to gain downside selling pressure. If all five parameters remain staturs quo, then markets stagger sideways.

For the SPX starting at 1869, the bulls need to push above 1877 to accelerate the upside. The bears need to push under 1851 to accelerate the downside. A move through 1852-1876 is sideways action. The bears are steering the bus but the bulls have their hands on the wheel as well so for now the imminent turn notation appears until the markets sort things out this morning. Bulls need XLF 21.80. Bears need SOX 567.10. Keybot prints a pre-scheduled number at 10 AM this morning.

4/30/14; 7:00 PM EST EOM =

4/29/14; 10:00 AM EST =

4/28/14; 3:15 PM EST = +49; signal line is +35 but algorithm remains short

4/28/14; 2:27 PM EST = +33; signal line is +34

4/28/14; 1:05 PM EST = +19; signal line is +33; go short 1859; (Benchmark SPX for 2014 = +0.6%)(Keybot this trade = +0.0%; Keybot for 2014 = +3.4%)(Actual this trade = +0.1%; Actual for 2014 = +1.0%)

4/28/14; 12:13 PM EST = +33; signal line is +33 but algorithm remains long

4/28/14; 11:14 AM EST = +49; signal line is +33

4/28/14; 10:19 AM EST = +65; signal line is +32

4/28/14; 9:45 AM EST = +49; signal line is +32

4/27/14; 7:00 PM EST = +65; signal line is +32

4/25/14; 10:00 AM EST = +65; signal line is +30

4/25/14; 9:30 AM EST = +63; signal line is +29

4/24/14; 10:47 AM EST = +79; signal line is +28

4/24/14; 9:36 AM EST = +63; signal line is +25

4/22/14; 2:58 PM EST = +47; signal line is +24

4/22/14; 11:38 AM EST = +63; signal line is +24

4/20/14; 7:00 PM EST = +47; signal line is +23

4/16/14; 2:54 PM EST = +47; signal line is +22; go long 1859; (Benchmark SPX for 2014 = +0.6%)(Keybot this trade = -0.6%; Keybot for 2014 = +3.4%)(Actual this trade = -0.6%; Actual for 2014 = +0.9%)