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

Keybot the Quant remains long. Volatilty is key and today was a reversal of yesterday's drama. VIX started the session under the important 13.98 bull-bear line in the sand so the bulls were walking around with their chests puffed out. From mid day forward, however, the bears sent the VIX above 13.98, punching the bulls in the face, and VIX remains above 13.98 causing market negativity. The fight continues tomorrow at VIX 13.98. Keybot is in position to go short right now but is held back since other programming rules must latch to trigger the move. For Friday, if the VIX remains above 13.98, and the SPX drops under 1874, and both remain bearish, Keybot will likely flip short. If there is a gap down opening, the algo may not flip short right away despite the markets selling off. A timer may trigger that would hold Keybot back for about 90 minutes to allow the markets to settle.

For the SPX starting at 1877, the bulls need to touch the 1882 handle and an upside acceleration to ring the bell at 1890 will occur in quick order. The bears need to push under 1874 to accelerate the downside, and, as mentioned above, Keybot will likely flip short. A move through 1875-1881 is sideways action. If the VIX drops under 13.98, the bears will fold like a cheap suit and the bulls will be partying higher into the weekend. With the above theatrics set in place, obviously the stage is set for the Monthly Jobs Report at 8:30 AM EST. This data will force futures in one direction or the other and provide the path forward using the above description as the guide. The 8:30 AM jobs data will tell the market story for Friday and perhaps well into next week. Keybot prints a pre-scheduled number pre-market.

3/9/14; 7:00 PM EST =

3/7/14; 9:00 AM EST =

3/6/14; 1:33 PM EST = +48; signal line is +49 but algorithm remains long

3/5/14; 3:55 PM EST = +62; signal line is +49