STOCK MARKET BEARISH -- SHORT -- CAUTION -- TURN MAY BE IMMINENT

Keybot the Quant remains short as equities rocket higher. VIX fell under the critical 14.27 level to provide bull fuel for the broad indexes, but the bears fight back and pull VIX higher to close on the bear side above 14.27. VIX begins Wednesday at 14.52. VIX 14.27 determines market direction. If the VIX drops under 14.27, and the SPX moves above 1874, and both remain bullish, Keybot will likely flip long.

For the SPX starting at 1872, receiving a spank down from the strong 1874 resistance, bulls only needs two points higher, to punch up through the 1874 resistance and a test of the all-time highs in the 1880's is on tap in quick order. The bears must push under 1859 support, 13 points lower, to accelerate the downside. A move through 1860-1873 is sideways action. It is surprising the bulls could not simply lock in the upside (considering the strong push higher over the last couple days) by keeping VIX below 14.27. Bulls had it but could not hold on. Markets likely want to idle until Fed Chair Yellen brings the tablets down from on high to dictate market direction. Watch VIX 14.27 and SPX 1874.

3/23/14; 7:00 PM EST =

3/18/14; 2:21 PM EST = +48; signal line is +51

3/18/14; 1:36 PM EST = +62; signal line is +51 but algorithm remains short

3/18/14; 11:49 AM EST = +48; signal line is +51

3/18/14; 11:31 AM EST = +62; signal line is +51 but algorithm remains short