STOCK MARKET BEARISH -- SHORT -- CAUTION

Keybot the Quant flips to the short side after this morning's bell at SPX 2282. The SPX gapped-down at the opening bell but not enough to trigger the delay timer so the algo flipped to the short side in quick order. As the day played out, note that UTIL came down to test the 655, and failed, but minutes later recovered. The authorities stepped in. Utilities ran higher off the low into the closing bell. Isn't it amazing that the quant can identify these key areas and the key levels in these areas  before they occur?

Retail stocks recovered during the session; the bulls know they need stronger retial stocks if they want to stop the downward slide in equities. Watch RTH 76.55 with price now at 76.36 only 19 pennies below creating market negativity. If RTH moves above 76.55, the bears got nothing and stocks will rally. Bears need to push UTIL under 655 now at 658 to open the door to a leg lower for the stock market. The bulls would be helped by UTIL moving above 664.

For Tuesday, with the SPX starting at 2281, the bulls need to push above 2286 to accelerate the upside. If RTH moves above 76.55, consider the imminent turn to be in play and if SPX takes out 2286 to the upside then Keybot will likely whipsaw back to the long side. The bears need to push  the SPX under 2268 to accelerate the downside. A move through 2269-2285 is sideways action for Tuesday. Keybot prints two pre-scheduled numbers today.

For the last trade, that lasted less than one week, the benchmark SPX index is up +1.9% on the year and the Keybot computer program is down -2.6% on the year. Both the algo program and actual trading gained about one-half percent on the last trade. The actual trading is down -6.3% thus far this year. At least the last trade is going in the correct direction now. The algo remains in single ETF  mode and exited SPY and entered SH.

Markets remain erratic and unstable so anything can happen.  Stay alert for a potential whipsaw back to the long side. Watch RTH 76.55 (bulls  need higher retail stocks) and UTIL 655 (bears need lower utilities)  like a hawk; these two parameters will tell you the broad market direction story for Tuesday.

2/3/17; 9:00 AM EST =

1/31/17; 7:00 PM EST EOM =

1/31/17; 10:00 AM EST =

1/30/17; 2:06 PM EST = +68; signal line is +81

1/30/17; 1:34 PM EST = +52; signal line is +81

1/30/17; 9:35 AM EST = +68; signal line is +82; go short 2282; (Benchmark SPX for 2017 = +1.9%)(Keybot algo this trade = +0.4%; Keybot algo for 2017 = -2.6%)(Actual results this trade = +0.5%; Actual results for 2017 = -6.3%)

1/29/17; 7:00 PM EST = +68; signal line is +82 but algorithm remains long

1/27/17; 10:00 AM EST = +68; signal line is +82 but algorithm remains long

1/27/17; 9:43 AM EST = +68; signal line is +81 but algorithm remains long

1/24/17; 11:40 AM EST = +84; signal line is +81; go long 2272; (Benchmark SPX for 2017 = +1.5%)(Keybot algo this trade = -0.4%; Keybot algo for 2017 = -3.0%)(Actual results this trade = -1.6%; Actual results for 2017 = -6.8%)