STOCK MARKET BULLISH -- LONG -- CAUTION

Keybot the Quant remains long after an eventful day of the algo printing six numbers. The gap-down opening turned into a drop and pop. The algo did not get sucked in since a gap-down timer triggered and the algo had to allow time to pass before committing. SOX recovered strongly providing bull fuel. The NYA runs above the 10812 bull-bear line in the sand (use this instead of 10805) adding bull fuel. The VIX drops under the 16.02 bull-bear line in the sand creating more bull fuel. The bulls were off and running but they did not get that far.

Watch VIX 16.02, NYA 10812 and XLF 24.05. The bears will fight back with VIX above 16.02 and/or NYA under 10812. If both VIX and NYA turn bearish, Keybot will likely flip short. The bulls need XLF above 24.05 which will verify that the stock market has more upside ahead and stocks will ratchet quickly higher. If the XLF stalls and cannot achieve 24.05 you know the bulls do not have any remaining upside juice.

For the SPX starting at 2057, the bulls only need one point, to touch the 2058 handle and boiinng, price will bounce towards 2067. The bears need to push under 2041 to regain their mojo, a formidable task, so instead bears will focus on keeping financials in the bear camp while wrestling volatility and the NYA back into the bear camp as well. Markets are extremely erratic and unstable moving in a sideways choppy pattern. This may continue until the FOMC decision occurs Wednesday afternoon. Watch the VIX very closely starting at 15.52 with bulls in charge under 16.02 and bears in charge above 16.02. Keybot prints a pre-scheduled number tomorrow one-half hour after the opening bell.

1/27/15; 10:00 AM EST =

1/26/15; 3:43 PM EST = +50; signal line is +23

1/26/15; 3:22 PM EST = +36; signal line is +23

1/26/15; 1:53 PM EST = +50; signal line is +23

1/26/15; 12:40 PM EST = +36; signal line is +23

1/26/15; 12:15 PM EST = +50; signal line is +23

1/26/15; 10:54 AM EST = +36; signal line is +23

1/25/15; 7:00 PM EST = +22; signal line is +23 but algorithm remains long