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

Keybot the Quant remains long. There was some late afternoon drama yesterday with volatility spiking but the bears simply do not have the oomph as yet to create a market turn. Watch VIX 13.19; now at 13.07 creating market bullishness.  For the SPX in the Friday session starting at 1650, the bulls need to punch up through 1660.50, about ten points higher, to initiate a new multi-handle upwards acceleration. The bears have the easier road only needing to push under 1649 to accelerate the downside targeting 1634-1636. The S&P futures, at this writing about four hours ahead of the U.S. open, are up six. A move through 1650-1659 is sideways action. If VIX moves above 13.19 and holds this level or higher, and the SPX drops under 1649, Keybot will likely flip short.

Note the three teases to the short side this week. The algo was positioned to go short once on Wednesday and twice yesterday, but the internal programming rules would not trigger the move, and the bears ran out of gas. Keybot prints a pre-scheduled number at 10 AM so the action can be updated at that time. Markets remain erratic and unstable.

5/19/13; 7:00 PM EST =

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

5/16/13; 3:58 PM EST = +46; signal line is +38

5/16/13; 3:47 PM EST = +32; signal line is +37 but algorithm says stay long

5/16/13; 10:36 AM EST = +46; signal line is +38

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

5/15/13; 1:35 PM EST = +46; signal line is +37

5/15/13; 12:40 PM EST = +32; signal line is +37 but algorithm says stay long

5/13/13; 9:30 AM EST = +46; signal line is +37