STOCK MARKET BULLISH -- LONG -- CAUTION -- TURN MAY BE IMMINENT

Keybot the Quant remains long but the spike in volatility this morning is ushering in market weakness. The Nasdaq index and tech in general, however, is receiving a bullish push due to happy CSCO earnings and commentary. VIX is 13.38, above the 13.20 bull-bear danger line, creating market negativity moving forward, as long as the VIX stays above 13.20. The SPX is printing 1656 well above the 1647 level that market bears need to see for the algo to flip to the short side. Thus, perhaps some market drama is on tap today. Pay attention to VIX 13.20 and SPX 1647, and, if the bulls recover, watch SPX 1661.50. The bulls are driving the bus but a turn may be imminent if the SPX loses about nine handles from current levels.

5/17/13; 10:00 AM EST =

5/16/13; 10:01 AM EST = +32; signal line is +37 but algorithm says stay long

5/16/13; 9:00 AM EST = +46; signal line is +38