STOCK MARKET BULLISH -- LONG -- CAUTION

Keybot the Quant is in the bull camp now as the wild market action continues. The fight for market direction is between retail, financials, volatility and copper. The bears need either RTH 58.63 or XLF 21.43. The bulls need either VIX 13.92 or JJC 39.85. One of these four parameters will flinch and equities will follow that direction. If all four remain status quo, then equities float along sideways with a slight upward bias.

For the SPX for Tuesday, starting at 1848, dead flat on the year thus far, the bulls need to touch the 1859 handle to accelerate the upside. The bears need to push below 1837 to accelerate the downside. A move through 1838-1858 is sideways action. The bulls are driving the bus but the caution flag remains out since a potential whipsaw may occur.

Retail is very close to its bull-bear line so that would be a big tell on markets at the opening bell. If RTH stays above 58.63 (now only 7 pennies above), equities will continue floating higher. If RTH falls under 58.63, equities will sell off. Note how the VIX did not fall through the 13.92-14.00 area today. This is why equities peaked and rolled over to the downside. Bulls need the VIX under 13.92 if they plan on taking markets higher. Keybot prints a pre-scheduled number tomorrow morning.

2/28/14; 10:00 AM EST =

2/25/14; 10:00 AM EST =

2/24/14; 9:45 AM EST = +48; signal line is +35; go long 1846; (Benchmark SPX for 2014 = -0.1%)(Keybot this trade = -1.0%; Keybot for 2014 = +2.5%)(Actual this trade = -3.8%; Actual for 2014 = +4.0%)