STOCK MARKET BULLISH -- LONG

Keybot the Quant remains long as the week is off to a wild start. The algo was quiet last week but this week it begins Monday by printing nine numbers; a very active day for the model. The algo number is 42 points above the signal line so the bulls are cruising. In these erratic markets, however, things could just as easily reverse. Copper jumped higher, ditto semiconductors, and volatility dropped catapulting the stock market higher. Retail stocks also kick into gear adding more upside fuel.

The bears need to push RTH under 72.58 to stop the upside market rally. Bears can also stop the rally and restart the downside if SOX falls under 610.70 and/or VIX moves above 19.44. If all three parameters turn bearish and the SPX drops under 1924, the algo will likely flip short. The bulls need higher financials, to push the XLF above 21.74, to create more upside juice.

For the SPX starting at 1946, the bulls need one point higher, to touch the 1947 handle, and an upside acceleration will occur. The bears need to push under 1924 to regain their mojo. A move through 1925-1946 is sideways action. Keybot prints a pre-scheduled number shortly after tomorrow's opening bell. The bulls are driving the bus but watch retail stocks, chips and volatility to determine market direction as highlighted above.

2/26/16; 10:00 AM EST =

2/23/16; 10:00 AM EST =

2/22/16; 3:43 PM EST = +38; signal line is -4

2/22/16; 3:34 PM EST = +22; signal line is -6

2/22/16; 3:24 PM EST = +38; signal line is -9

2/22/16; 2:43 PM EST = +24; signal line is -10

2/22/16; 1:07 PM EST = +38; signal line is -11

2/22/16; 11:36 AM EST = +22; signal line is -14

2/22/16; 11:32 AM EST = +38; signal line is -17

2/22/16; 11:19 AM EST = +24; signal line is -20

2/22/16; 9:36 AM EST = +8; signal line is -23

2/21/16; 7:00 PM EST = -8; signal line is -24