STOCK MARKET BULLISH -- LONG -- CAUTION

Keybot the Quant remains long through the holiday weekend. The retail sector holds the key for bulls and will determine if the SPX moves far above 1900, or not. Watch RTH 58.61 as the bull-bear line in the sand. RTH is now at 58.54 causing market negativity. Bulls need only 7 pennies and the victory flag can be waved and the wine will be flowing like water. Bears must hold RTH 58.61, otherwise, they will crumble.

Bears need weaker financials to gain downside traction, XLF 21.85, but bulls are running the XLF above 22. Utilities are back on Keybot's radar screen and the algo is starting to track UTIL 519.51 (now at 534.02 creating market bullishness) and this number is the same for the entire week ahead. Markets will noticeable weaken if UTIL loses 520 and in fact, the bulls must keep UTIL above 520 here on out.

For the SPX starting at 1901, the bulls only need a smidge of positivity in the futures and this will launch a several handle move in the SPX easily punching up through the all-time record high at 1902.17 moving towards 1905-1910. The bears must create negative futures overnight, otherwise, another day of pain is ahead. The bears must push below 1893 to regain their downside mojo. A move through 1894-1900 is sideways action to begin the week.

Bulls and bears continue to fight it out. Caution is warranted for a potential flip to the downside but bears got nothing without creating weaker financials and/or utilities. If RTH takes out 58.61, the SPX will likely target 1910-1930 and the caution flag will immediately disappear as the bulls cruise higher. Bears better give up the Memorial Day fun today and instead eat their Wheaties and show up with a game face tomorrow morning, otherwise, they will fold like a cheap suit. Keybot begins the week by printing a pre-scheduled number early in the Tuesday session and another on Friday morning.

6/1/14; 7:00 PM EST EOM =

5/30/14; 10:00 AM EST =

5/27/14; 10:00 AM EST =

5/25/14; 7:00 PM EST = +64; signal line is +56

5/22/14; 9:44 AM EST = +64; signal line is +55; go long 1889; (Benchmark SPX for 2014 = +2.2%)(Keybot this trade = -0.5%; Keybot for 2014 = +2.4%)(Actual this trade = -1.1%; Actual for 2014 = -0.3%)