STOCK MARKET BEARISH -- SHORT -- CAUTION

Keybot the Quant flips to the short side during the crazy Friday trade. The Brexit referendum was approved creating a shock wave in global markets. Indexes crash but the impact in the US was not too bad. Keybot flips to the short side just before lunchtime at SPX 2054.

For next week it is a battle between chips and copper. Bulls need stronger semiconductors to prove that up is the direction. Bears need lower copper to prove that down is the direction. Copper, JJC, drops and ends exactly on top of the 24.11 number the algo is identifying as a key bull-bear line in the sand; the pivot up or down will likely take the stock market with it. Watch copper overnight Sunday since 'as copper goes, so go the markets'.

On the last trade, the Keybot algo takes the worst shellacking of the year thus far for a trade. The algorithm program lost -2% on the last trade but remains up +6% on the year. The actual trading, triggered by the algo, lost -4%. Double ETF's can be a blessing, or a curse; in this case the latter. The actual trading remains up +11% on the year which is respectable considering both bulls and bears are getting chewed-up and spit out week after week in these sideways choppy markets. Keybot exited SSO and entered SDS remaining in the 2x ETF's. The benchmark SPX is up one-half percent this year at the time of the last trade but actually finished Friday negative for 2016 at 2037 (the year began at SPX 2044).

Next week's parameters of interest and levels can be identified once the Sunday pre-scheduled number prints tomorrow. The bears are back in the drivers seat. Copper and chips will determine the stock market direction on Monday.

6/28/16; 10:00 AM EST =

6/26/16; 7:00 PM EST =

6/24/16; 3:59 PM EST = +33; signal line is +53

6/24/16; 3:48 PM EST = +49; signal line is +55

6/24/16; 3:19 PM EST = +33; signal line is +56

6/24/16; 2:57 PM EST = +49; signal line is +58

6/24/16; 2:37 PM EST = +33; signal line is +59

6/24/16; 11:26 AM EST = +49; signal line is +60; go short 2054; (Benchmark SPX for 2016 = +0.5%)(Keybot algo this trade = -2.1%; Keybot algo for 2016 = +5.6%)(Actual results this trade = -4.2%; Actual results for 2016 = +11.0%)

6/24/16; 10:00 AM EST = +49; signal line is +61 but algorithm remains long

6/24/16; 9:36 AM EST = +50; signal line is +61 but algorithm remains long

6/22/16; 1:07 PM EST = +66; signal line is +62

6/22/16; 9:43 AM EST = +82; signal line is +61

6/21/16; 11:52 AM EST = +66; signal line is +60

6/21/16; 9:42 AM EST = +50; signal line is +60 but algorithm remains long

6/20/16; 3:56 PM EST = +34; signal line is +60 but algorithm remains long

6/20/16; 11:48 AM EST = +50; signal line is +61 but algorithm remains long

6/20/16; 9:40 AM EST = +66; signal line is +61; go long 2098; (Benchmark SPX for 2016 = +2.6%)(Keybot algo this trade = -0.7%; Keybot algo for 2016 = +7.7%)(Actual results this trade = -0.1%; Actual results for 2016 = +15.2%)