STOCK MARKET BEARISH -- SHORT -- CAUTION

Keybot the Quant flips to the short side yesterday at SPX 1880. The financials broke down from the get-go so you knew the markets were in trouble. Weakness in semiconductors must be monitored closely moving forward. Retail earnings were robust after the bell last evening so this may help the bulls mount a recovery. As always, stay alert for a whipsaw today or Monday. Keybot gained a smidge on the last trade as the markets exhibit sideways choppy behavior. The algo cycled out of SPY and into SDS and is now back into the double X ETF's since a 35-day timer has expired, triggered by the market whipsaw behavior. The sideways choppiness may now be resolving.

Watch SOX 569.90 (now causing bullishness at 570 only pennies above), XLF 21.85 (now causing bearishness at 21.72) and RTH 58.66 (now causing bearishness at 57.72). The fight appears to be financials versus semi's. Bulls need XLF 21.85 to stop the market selling. Bears need SOX under 569.90, only pennies away, to create another broad market down leg.

For the SPX starting at 1871, the bulls have to recover yesterdays down move and return to 1888 to get their mojo back, a formidable task, so instead the bulls will focus on boosting financial and semiconductor stocks. The bears need to push under 1862.50 to accelerate the downside. A move through 1863-1887 is sideways action into the weekend. The bears are driving the bus again. How far will they travel? Keybot prints two pre-scheduled numbers this morning one before the opening bell and one after.

5/18/14; 7:00 PM EST =

5/16/14; 10:00 AM EST =

5/16/14; 9:00 AM EST =

5/15/14; 3:41 PM EST = +49; signal line is +53

5/15/14; 3:26 PM EST = +33; signal line is +53

5/15/14; 2:58 PM EST = +49; signal line is +54

5/15/14; 10:10 AM EST = +33; signal line is +54

5/15/14; 9:41 AM EST = +49; signal line is +55; go short 1880; (Benchmark SPX for 2014 = +1.7%)(Keybot this trade = +0.3%; Keybot for 2014 = +2.9%)(Actual this trade = +0.4%; Actual for 2014 = +0.8%)

5/15/14; 9:36 AM EST = +49; signal line is +55 but algorithm remains long

5/14/14; 9:36 AM EST = +65; signal line is +55

5/12/14; 12:17 PM EST = +81; signal line is +53

5/12/14; 11:42 AM EST = +65; signal line is +51

5/12/14; 10:46 AM EST = +81; signal line is +51

5/11/14; 7:00 PM EST = +65; signal line is +50

5/9/14; 11:22 AM EST = +65; signal line is +50

5/9/14; 10:42 AM EST = +49; signal line is +50 but algorithm remains long

5/9/14; 10:16 AM EST = +65; signal line is +50

5/9/14; 10:01 AM EST = +49; signal line is +50 but algorithm remains long

5/9/14; 9:55 AM EST = +65; signal line is +51

5/9/14; 9:47 AM EST = +49; signal line is +51 but algorithm remains long

5/9/14; 9:36 AM EST = +65; signal line is +51

5/7/14; 2:34 PM EST = +49; signal line is +51 but algorithm remains long

5/7/14; 12:44 PM EST = +33; signal line is +51 but algorithm remains long

5/7/14; 11:49 AM EST = +49; signal line is +51 but algorithm remains long

5/6/14; 9:36 AM EST = +33; signal line is +51 but algorithm remains long

5/5/14; 10:14 AM EST = +49; signal line is +50 but algorithm remains long

5/5/14; 9:36 AM EST = +33; signal line is +48 but algorithm remains long

5/4/14; 7:00 PM EST = +49; signal line is +48

5/2/14; 10:47 AM EST = +49; signal line is +47

5/2/14; 9:42 AM EST = +65; signal line is +45

5/2/14; 9:00 AM EST = +49; signal line is +43

4/30/14; 7:00 PM EST EOM = +49; signal line is +42

4/29/14; 11:00 AM EST = +49; signal line is +40

4/29/14; 10:00 AM EST = +65; signal line is +39

4/29/14; 9:31 AM EST = +65; signal line is +36; go long 1874; (Benchmark SPX for 2014 = +1.4%)(Keybot this trade = -0.8%; Keybot for 2014 = +2.6%)(Actual this trade = -0.6%; Actual for 2014 = +0.4%)