STOCK MARKET BEARISH -- SHORT -- CAUTION

Keybot the Quant flips to the short side at SPX 2263 this morning. The stock market continues in a sideways choppy pattern which wreaks havoc on algorithms. Retail stocks fail creating market weakness. Banks are also weak. Ditto utilities.

To determine if the short side is the correct path ahead, the bears need either UTIL under 651.79 and/or XLF under 22.76. Either one of these two parameters would confirm the bear path ahead and the stock market will drop a leg lower.

The bulls need to push RTH above 76.64 to create an upside rally and further frustrate the bears. Volatility remains low which keeps the stock market buoyant.

On the last trade, the Keybot computer program loses nearly -1% and the actual trading loses -1.6% now down -5.2% to begin the year. The actual results are going in the wrong direction so far this year but they should right the ship as time continues along. Keybot exits SSO and enters TWM.

For the SPX starting on Tuesday at 2265, the bulls need to touch the 2272 handle and the upside will accelerate. Keybot may whipsaw back to the long side if RTH moves above 76.64 and SPX above 2272. The market bears need to push below 2257 to accelerate the downside. A move through 2258-2271 is sideways action for Tuesday.

1/29/17; 7:00 PM EST =

1/27/17; 10:00 AM EST =

1/23/17; 2:03 PM EST = +68; signal line is +81

1/23/17; 1:10 PM EST = +84; signal line is +81 but algorithm remains short

1/23/17; 10:32 AM EST = +68; signal line is +81; go short 2263; (Benchmark SPX for 2017 = +1.1%)(Keybot algo this trade = -0.8%; Keybot algo for 2017 = -2.6%)(Actual results this trade = -1.6%; Actual results for 2017 = -5.2%)

1/23/17; 10:22 AM EST = +68; signal line is +81 but algorithm remains long

1/23/17; 9:46 AM EST = +84; signal line is +81

1/23/17; 9:36 AM EST = +68; signal line is +79 but algorithm remains long

1/22/17; 7:00 PM EST = +84; signal line is +79

1/20/17; 3:44 PM EST = +84; signal line is +79

1/20/17; 3:29 PM EST = +68; signal line is +79 but algorithm remains long

1/19/17; 9:36 AM EST = +84; signal line is +79

1/19/17; 9:00 AM EST = +100; signal line is +79

1/18/17; 3:46 PM EST = +100; signal line is +77

1/18/17; 3:14 PM EST = +84; signal line is +75

1/17/17; 3:38 PM EST = +100; signal line is +73

1/17/17; 3:08 PM EST = +84; signal line is +72

1/17/17; 2:33 PM EST = +100; signal line is +71

1/17/17; 2:22 PM EST = +84; signal line is +69

1/17/17; 12:49 PM EST = +100; signal line is +69

1/17/17; 12:40 PM EST = +84; signal line is +68

1/17/17; 10:07 AM EST = +100; signal line is +68

1/17/17; 9:36 AM EST = +84; signal line is +66

1/15/17; 7:00 PM EST = +68; signal line is +65

1/13/17; 10:00 AM EST = +68; signal line is +65

1/11/17; 2:31 PM EST = +68; signal line is +66

1/11/17; 12:07 PM EST = +52; signal line is +66 but algorithm remains long

1/9/17; 9:41 AM EST = +68; signal line is +67

1/8/17; 7:00 PM EST = +84; signal line is +68

1/6/17; 2:14 PM EST = +84; signal line is +68

1/6/17; 12:57 PM EST = +68; signal line is +69 but algorithm remains long

1/6/17; 12:33 PM EST = +84; signal line is +69; go long 2280; (Benchmark SPX for 2017 = +1.8%)(Keybot algo this trade = -1.8%; Keybot algo for 2017 = -1.8%)(Actual results this trade = -3.6%; Actual results for 2017 = -3.6%)