STOCK MARKET BULLISH -- LONG

Keybot the Quant is on the long side after yesterday's big rally on the PBOC money pump. The bulls are in control of stock market direction with the algo number 27 points above the signal line. Bulls are goosing copper this morning to continue the rally. Bulls will focus on sending copper higher and smacking volatility lower.

Bulls need the VIX below 13.90 to claim solid victory ahead. The VIX is now trading at 15.666 five hours before the opening bell for the US regular hump day trading session. S&P futures are up +26 staging a 32-point turnaround over the last hour so the bulls want to play some more.

Bears need to send the banks and chips lower to stop the stock market rally. Bears need XLF below 30.26 and/or SOX below 1828. Either parameter flipping into the bear camp will immediately stop the rally. If both turn bearish, and the SPX slips below 3281, trending lower, Keybot would likely flip short. The caution flag will be out if  one parameter turns bearish and the imminent turn to the short side will be in play if both turn bearish. Bears will also receive strength if retail stocks falter. Bears need RTH below 120.06.

Bulls are in the driver's seat. Copper, volatility, banks, chips and retail stocks are all in play and the major factors currently dictating stock market direction. The price action remains erratic and unstable.

2/9/20; 7:00 PM EST =

2/7/20; 9:00 AM EST =

2/4/20; 9:36 AM EST = +56; signal line is +29; go long 3288; (Benchmark SPX for 2020 = +1.8%)(Keybot algo this trade = -1.2%; Keybot algo for 2020 = +0.7%)(Actual trading results this trade = -1.2%; Actual trading results for 2020 = +7.8%)