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

Keybot the Quant remains short which is a surprise with the bulls running today. XLF took out 21.83 from the get-go so you knew it would be a bullish day wall-to-wall, which it was. Interestingly, the algo will not yet latch properly to permit the move to the long side. Keybot was within one minute of flipping long today four different times; at 11 AM, 2 PM, 3:15 PM and minutes before the closing bell, but the program would not latch. If the SPX gains only one measly point, moving above 1889, and remaining above for a few minutes, Keybot will likely flip long. If equities gap up on Thursday morning, Keybot will likely delay the move to the long side for approximately 90 minutes since a gap-up timer would be activated and prevent the immediate flip to the bull side. The bears need XLF under 21.83 (now four pennies above in the bull camp at 21.87) or they got nothing.

For the SPX starting at 1888, the bulls need to touch the 1889 handle and an upside acceleration will occur to 1891 then immediately upward to 1897 and then 1900 plus. So watch the overnight S&P futures to see if the bulls can muster up one point, or not. The bears need to push under 1873 to accelerate the downside. A move through 1874-1888 is sideways action.

5/25/14; 7:00 PM EST =

5/21/14; 9:36 AM EST = +64; signal line is +55 but algorithm remains short

5/20/14; 9:39 AM EST = +48; signal line is +55