STOCK MARKET BULLISH -- LONG -- CAUTION

Keybot the Quant remains long as the goofy market action continues. The algo prints one number today. Semiconductors took the pipe which created market weakness but the bears could not develop further strength. Bulls need SOX above 670.03 and/or VIX under 16.49 and the upside stock market party will resume. Bears need XLF under 23.86 and/or NYA under 10814 to declare victory and send equities strongly lower. If VIX and SOX remain bearish and XLFand NYA remain bullish, then stocks stagger sideways with an upward bias. If financials turn bearish (XLF under 23.86) or NYA turns bearish (NYA under 10814), either one will do, and the SPX drops under 2042, Keybot will likely flip to the short side. If banks are weak on Tuesday, consider the imminent turn status to be in play for the algo. If banks trade positively after the opening bell, the fix is probably in and the bulls will likely move stocks sideways to sideways higher.

Note that UTIL dropped to 607. Big trouble occurs if UTIL drops under 597 this week, or 603 next week. UTIL is only four points from the level that will cause market trouble next week.

For the SPX starting at 2047, the bulls need to touch the 2056 handle and bingo, the upside will accelerate to 2061 in a heartbeat. The bears need to push under 2042 to accelerate the downside. A move through 2043-2055 is sideways action for Tuesday. Pay close attention to SOX 670 and NYA 10814 since these two parameters will tell you the market story on Tuesday. Bulls need stronger semiconductors and bears need a lower NYA Index, respectively.

2/15/15; 7:00 PM EST =

2/13/15; 10:00 AM EST =

2/9/15; 9:36 AM EST = +40; signal line is +30

2/8/15; 7:00 PM EST = +56; signal line is +29