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

Keybot the Quant remains long through the roller coaster sideways choppy action. The bears push the SPX down to an 1859 handle but that was short-lived and within 2 to 3 minutes markets recover. Keybot needs the key levels to hold for several minutes before they are locked in. So the bulls jam financials higher and ride the banks to victory today. XLF is 21.88 one nickel above the critical 21.83 bull-bear line in the sand. Bulls will continue floating equity markets higher with XLF above 21.83. Bears will send equities lower if XLF fails at 21.83. Financials are the key parameter dictating market direction currently.

Bulls need higher copper to confirm the path higher so keep an eye on it overnight. Watch JJC 37.42. Bears will receive downside market fuel with VIX 14.59 but volatility remains limp each day. Watch the banks. For the SPX starting at 1878, the bulls only need one point, to touch the 1879 handle and bingo, an acceleration will occur to 1884 then 1891. So watch for any positivity in the overnight S&P futures. The bears need to send price down to the lows from Wednesday at 1860 to regain mojo, a formidable task. Instead, bears will likely focus on financials with all their might and consider Thursday a victory if they can send XLF under 21.83.

Keybot wants to go short since Monday but the necessary parameters and rules will not latch as yet so Keybot remains long. If the SPX drops under 1854-1860 on Thursday, Keybot will likely flip short, otherwise, will likely remain long. There may be only one other time in the algo's five-year history that the algo number and signal line have disagreed with the algo direction for more than three days. This behavior is testimony to the bull-bear struggle ongoing. Markets are very unstable. The beat goes on.

5/11/14; 7:00 PM EST =

5/7/14; 2:34 PM EST = +49; signal line is +51 but algorithm remains long

5/7/14; 12:44 PM EST = +33; signal line is +51 but algorithm remains long

5/7/14; 11:49 AM EST = +49; signal line is +51 but algorithm remains long

5/6/14; 9:36 AM EST = +33; signal line is +51 but algorithm remains long