STOCK MARKET BULLISH -- LONG -- CAUTION

Keybot the Quant flips to the long side at SPX 1419 at 3 PM. Watch RTH 43.55 since that will signal further upside for the bulls. The fiscal cliff resolution is pumping the markets higher. The last trade for Keybot gained over one percent. Keybot exited DOG and entered DIA. Stay alert, espeically in these markets, for a whipsaw move. Congress has to close the deal in the coming hours. Markets are very unstable and erratic.

12/31/12; 7:00 PM EST EOM EOQ4 EOH2 EOY2012 =

12/31/12; 2:51 PM EST = +17; signal line is -5; go long 1419; (Benchmark SPX for 2012 = +12.8%)(Keybot this trade = +1.1%; Keybot for 2012 = +21.9%)(Actual this trade = +1.5%; Actual for 2012 = +19.6%)

12/31/12; 2:49 PM EST = +17; signal line is -5 but algorithm says stay short

12/31/12; 10:14 AM EST = +1; signal line is -5 but algorithm says stay short

12/31/12; 9:55 AM EST = -15; signal line is -5

12/31/12; 9:46 AM EST = +1; signal line is -4 but algorithm says stay short

12/31/12; 9:30 AM EST = -15; signal line is -4

12/30/12; 7:00 PM EST = -31; signal line is -2

12/28/12; 3:59 PM EST = -31; signal line is +0

12/28/12; 11:08 AM EST = -15; signal line is +2

12/28/12; 10:42 AM EST = +1; signal line is +3

12/28/12; 9:53 AM EST = -15; signal line is +4

12/27/12; 2:44 PM EST = +1; signal line is +6

12/27/12; 1:22 PM EST = -15; signal line is +7

12/27/12; 1:12 PM EST = +1; signal line is +8

12/27/12; 11:55 AM EST = -15; signal line is +9

12/27/12; 10:41 AM EST = +1; signal line is +10

12/27/12; 10:18 AM EST = -15; signal line is +11

12/27/12; 10:00 AM EST = +1; signal line is +12

12/27/12; 9:30 AM EST = +1; signal line is +13

12/26/12; 10:42 AM EST = -15; signal line is +13

12/26/12; 10:20 AM EST = +1; signal line is +14

12/26/12; 9:48 AM EST = +17; signal line is +14 but algorithm says stay short

12/24/12; 12:24 PM EST = +1; signal line is +14

12/24/12; 9:30 AM EST = -15; signal line is +13

12/23/12; 7:00 PM EST = +1; signal line is +14

12/21/12; 10:00 AM EST = +1; signal line is +14

12/20/12; 9:44 AM EST = +1; signal line is +14; go short 1435; (Benchmark SPX for 2012 = +14.1%)(Keybot this trade = +0.6%; Keybot for 2012 = +20.8%)(Actual this trade = +0.1%; Actual for 2012 = +18.1%)

STOCK MARKET BEARISH -- SHORT -- CAUTION

Keybot the Quant remains short but the bulls are pumping the markets with stronger copper and semiconductors.  The algo wants to go long right now but is held back due to internal programming rules. If the SPX should punch above 1418 and hold that level today, there is a liklihood that Keybot will flip to the long side. Watch SOX 377.15 and JJC 45.36. Never a dull moment. Markets remain highly unstable.

12/31/12; 7:00 PM EST EOM EOQ4 EOH2 EOY2012 =

12/31/12; 10:14 AM EST = +1; signal line is -5 but algorithm says stay short

12/31/12; 9:55 AM EST = -15; signal line is -5

12/31/12; 9:46 AM EST = +1; signal line is -4 but algorithm says stay short

12/31/12; 9:30 AM EST = -15; signal line is -4

12/30/12; 7:00 PM EST = -31; signal line is -2

STOCK MARKET BEARISH -- SHORT -- CAUTION

Keybot the Quant remains short heading into the Monday session, the last trading day of 2012 and the last trading day until Wednesday morning. The algo is most interested in the semiconductors, SOX 377.15, and also copper and financials, JJC 45.36 and XLF 15.85, respectively.  SOX and JJC are contributing negatively to markets while the XLF is contributing bullishly.  Any change to these three parameters will move the markets in that respective direction. RTH 43.65 is also important.

For the SPX starting at 1402, the bulls need to come with some fire power, to punch up thru 1418 to launch an upside acceleration. This will probably only occur if the fiscal cliff resolution is a very positive event this evening and overnight into tomorrow. The bears only need to see a smidge of red in the futures to create a downside acceleration. This will occur if the fiscal cliff talks hit a snag or if a weak package is delivered this evening. A move thru 1403-1417 is sideways action. Keybot the Quant program has to be closed out for 2012 after trading ends tomorrow and then the new 2013 trading year begins on Wednesday. Two pre-scheduled numbers print this week. Markets are closed on Tuesday, 1/1/13, for the New Year's Day holiday.

1/6/13; 7:00 PM EST =

1/4/13; 9:00 AM EST =

12/31/12; 7:00 PM EST EOM EOQ4 EOH2 EOY2012 =

12/30/12; 7:00 PM EST = -31; signal line is -2

12/28/12; 3:59 PM EST = -31; signal line is +0

STOCK MARKET BEARISH -- SHORT -- CAUTION

Keybot the Quant remains short thru the weekend. The markets deteriorated into the closing bell.  JJC is under 45.36.  SOX is under 377.10. Both are creating market negativity. The algo was very active during the week and finished Friday with printing four more numbers. There is only one more trading day remaining in the year. Keybot will be rezeroed and the year closed out once 4 PM EST Monday occurs. The new 2013 year of trading will begin on Wednesday at 9:30 AM. The sectors and levels of interest for next week can be identified once the pre-scheduled Sunday number prints tomorrow. The bears are driving the bus.

12/31/12; 7:00 PM EST EOM EOQ4 EOH2 EOY2012 =

12/30/12; 7:00 PM EST =

12/28/12; 3:59 PM EST = -31; signal line is +0

12/28/12; 11:08 AM EST = -15; signal line is +2

12/28/12; 10:42 AM EST = +1; signal line is +3

12/28/12; 9:53 AM EST = -15; signal line is +4

12/27/12; 2:44 PM EST = +1; signal line is +6

STOCK MARKET BEARISH -- SHORT -- CAUTION

Keybot the Quant remains short moving into the Friday session.  Copper remains a key focus for the algo, watch JJC 45.36 closely, now contributing bullishly to markets but only by pennies. SOX 377.10 (now bullish), XLF 15.85 (now bullish) and RTH 43.65 (now bearish) are also important. Any changes to the four parameters above will move the broad indexes in that respective direction.  For the SPX today, starting at 1418, the bulls need to touch the 1423 handle, if so, an upside acceleration will occur. The bears need to push under 1402 to create a downside acceleration. A move thru 1403-1421 is sideways action. Markets are highly unstable and erratic reacting to the fiscal cliff news in real time.

12/30/12; 7:00 PM EST =

12/27/12; 2:44 PM EST = +1; signal line is +6

12/27/12; 1:22 PM EST = -15; signal line is +7

12/27/12; 1:12 PM EST = +1; signal line is +8

12/27/12; 11:55 AM EST = -15; signal line is +9

STOCK MARKET BEARISH -- SHORT -- CAUTION

Keybot the Quant is short as the algo continues an active day printing two more numbers.  The semiconductors broke down.  Copper, however, is the big bull hope, so JJC is a hair above 45.36, hanging on for the bulls by a thread. The bears are cruising today. The SPX is at 1402.

12/30/12; 7:00 PM EST =

12/27/12; 11:55 AM EST = -15; signal line is +9

12/27/12; 10:41 AM EST = +1; signal line is +10

12/27/12; 10:18 AM EST = -15; signal line is +11

STOCK MARKET BEARISH -- SHORT -- CAUTION

Keybot the Quant is short with the algo active today, printing two numbers in addition to the pre-scheduled number.  The bears continue to drive the bus.  The bulls pushed copper higher thru JJC 45.36 but this reversed.  The SPX fell thru 1419, dropping like a stone to the 1409 support where price bounces.  Watch semiconductors, SOX 377.50, and copper, JJC 45.36. Markets are unstable.

12/30/12; 7:00 PM EST =

12/27/12; 10:18 AM EST = -15; signal line is +11

12/27/12; 10:00 AM EST = +1; signal line is +12

12/27/12; 9:30 AM EST = +1; signal line is +13

12/26/12; 10:42 AM EST = -15; signal line is +13

STOCK MARKET BEARISH -- SHORT -- CAUTION

Keybot the Quant remains short going into the Thursday session. Copper and commodities are helping to levitate markets but semiconductors drop and volatility continues higher.  JJC 45.36 is the key focus of the algo currently. JJC is 45.29 pennies on the bear side causing market negativity.  The quant is also tracking GTX 4975 (now bearish), RTH 43.65 (now bearish), SOX 377.50 (now bullish) and XLF 15.85 (now bullish). These five sectors are most greatly impacting broad market direction currently. Watch copper, JJC 45.36, closely.

For the SPX starting at 1420, the bulls need to touch 1429.50, almost ten points higher, to create an upside acceleration.  The bears need to push under 1416.50 to create a downside acceleration. A move thru 1417-1429 is sideways action today. Keybot prints a pre-scheduled number at 10 AM so the action can be updated at that time.

12/30/12; 7:00 PM EST =

12/27/12; 10:00 AM EST =

12/26/12; 10:42 AM EST = -15; signal line is +13

12/26/12; 10:20 AM EST = +1; signal line is +14

STOCK MARKET BEARISH -- SHORT -- CAUTION

Keybot the Quant remains short as the algo is off to a quick start for this holiday-shortened week. Copper and commodities provided the early lift but then JJC 45.38 and RTH 43.65 broke down moving into the bear camp creating market weakness. VIX is over 19. Utilities are weak. Financials are holding up and remaining bull friendly. The SPX 1419 support level is key and an important bull-bear line in the sand. Markets remain unstable.

12/30/12; 7:00 PM EST =

12/27/12; 10:00 AM EST =

12/26/12; 10:42 AM EST = -15; signal line is +13

12/26/12; 10:20 AM EST = +1; signal line is +14

12/26/12; 9:48 AM EST = +17; signal line is +14 but algorithm says stay short

12/24/12; 12:24 PM EST = +1; signal line is +14

STOCK MARKET BEARISH -- SHORT -- CAUTION

Keybot the Quant is short as the holiday ends and the Wednesday session is set to resume trading. Watch RTH 43.65, now at 43.82, on the bull side. Markets will weaken if RTH drops under 43.65. Markets will remain buoyant if the RTH stays above 43.65. The algo is also tracking VIX 16.05, UTIL 465.87 and XLF 15.88.  Volatility and utilites are bearish while financials are bullish. For the SPX today, starting at 1427, the bulls need to push above 1430, only three points higher, to create an upside acceleration. The bears need to push under 1425, only two points lower, to create a downside acceleration. Markets remain erratic and unstable.

12/30/12; 7:00 PM EST =

12/27/12; 10:00 AM EST =

12/24/12; 12:24 PM EST = +1; signal line is +14

12/24/12; 9:30 AM EST = -15; signal line is +13

STOCK MARKET BEARISH -- SHORT -- CAUTION

Keybot the Quant remains short as the algo prints a number taking the model lower. The retail sector is weak today, copper and commodities remain weak and volatility continues higher. The SPX travels sideways in light holiday trading.

12/30/12; 7:00 PM EST =

12/27/12; 10:00 AM EST =

12/24/12; 9:30 AM EST = -15; signal line is +13

12/23/12; 7:00 PM EST = +1; signal line is +14

STOCK MARKET BEARISH -- SHORT -- CAUTION

Keybot the Quant is short going into the Monday shortened session. The bulls need to push the VIX under 15.90, push the UTIL above 465.77, and keep the RTH above 44.44 and the XLF above 15.78.  The bears need to keep the VIX above 15.90, keep UTIL under 465.77, and push the RTH under 44.44 and XLF under 15.78. Any changes to the parameters listed will push the broad indexes in that respective direction.

For Monday for the SPX starting at 1430, the bulls need to punch up thru 1444 which will ignite an upside acceleration. The bears need to push under 1423 to ignite a downside acceleration.  A move thru 1424-1442 is sideways action. Markets remain in a bull-bear struggle reacting to fiscal cliff shenanigans. Keybot prints one pre-scheduled number this week on Thursday morning. The Monday session ends at 1 PM EST and the markets are closed for Christmas Day on Tuesday.

12/30/12; 7:00 PM EST =

12/27/12; 10:00 AM EST =

12/23/12; 7:00 PM EST = +1; signal line is +14

12/21/12; 10:00 AM EST = +1; signal line is +14

STOCK MARKET BEARISH -- SHORT -- CAUTION

Keybot the Quant is short thru the weekend. The algo motored along on Friday without printing any further numbers.  The retail sector was threatening a break down at RTH 44.44 but recovered.  The bull-bear struggle continues in the markets.  Next weeks areas of interest can be identified once the pre-scheduled number prints tomorrow.

12/23/12; 7:00 PM EST =

12/21/12; 10:00 AM EST = +1; signal line is +14

STOCK MARKET BEARISH -- SHORT -- CAUTION

Keybot the Quant is short as the Friday session motors along. The pre-scheduled number results in no change.  Watch RTH 44.44 (use this number instead of 44.50). RTH is now at 44.67 and actually dropped to 44.50 before bouncing after the opening bell. The markets will take another leg lower if RTH 44.44 fails. The bears are driving the bus.

12/23/12; 7:00 PM EST =

12/21/12; 10:00 AM EST = +1; signal line is +14

12/20/12; 9:44 AM EST = +1; signal line is +14; go short 1435; (Benchmark SPX for 2012 = +14.1%)(Keybot this trade = +0.6%; Keybot for 2012 = +20.8%)(Actual this trade = +0.1%; Actual for 2012 = +18.1%)

STOCK MARKET BEARISH -- SHORT -- CAUTION

Keybot the Quant is short going into the Friday session and did not print any further numbers yesterday after flipping to the bear side.  Copper collapsed into the bear camp causing market negativity. Volatility is higher as well. Keybot continues to track VIX 15.90 as a bull-bear line in the sand. Watch UTIL 465.82, now at 460.14, contributing bearishly to markets. Watch RTH 44.50, now at 45.20 contributing bullishly to markets. Financials are the main driver of the recent rally especially the upside orgy this week.  Watch XLF 15.83, now at 16.70 contributing bullishly to markets.

For the SPX starting at 1444, the bulls only need to see a smidge of positivity in the futures to ignite an upside acceleration. However, the failure of the Plan B vote last evening in the House of Representatives at 8 PM EST has sent the futures, and global markets, into a tizzy. The bears need need to drop under 1433 to create a downside acceleration and that appears easily on tap with the S&P's down 20 as this is typed five hours before the opening bell. An interesting day is on tap. Keybot prints a pre-scheduled number at 10 AM so the market action can be updated at that time.

12/23/12; 7:00 PM EST =

12/21/12; 10:00 AM EST =

12/20/12; 9:44 AM EST = +1; signal line is +14; go short 1435; (Benchmark SPX for 2012 = +14.1%)(Keybot this trade = +0.6%; Keybot for 2012 = +20.8%)(Actual this trade = +0.1%; Actual for 2012 = +18.1%)

STOCK MARKET BEARISH -- SHORT -- CAUTION

Keybot the Quant flips to the short side shortly after today's opening bell at SPX 1435. Copper is collapsing over the last couple days, the JJC dropping one buck today. Utilities remain weak, volatility remains high, commodities remain weak, and retail is weakening today. For the last trade, the program gained about one-half percent but the actual trading was flat.  Keybot exited the DIA position and entered DOG. The bears are driving the bus now.  As always, especially in these markets, stay alert for a whipsaw move back to the long side today or tomorrow.

12/23/12; 7:00 PM EST =

12/21/12; 10:00 AM EST =

12/20/12; 9:44 AM EST = +1; signal line is +14; go short 1435; (Benchmark SPX for 2012 = +14.1%)(Keybot this trade = +0.6%; Keybot for 2012 = +20.8%)(Actual this trade = +0.1%; Actual for 2012 = +18.1%)

12/19/12; 11:54 AM EST = +1; signal line is +14 but algorithm says stay long

12/19/12; 11:34 AM EST = +17; signal line is +15

12/19/12; 11:06 AM EST = +1; signal line is +14 but algorithm says stay long

12/19/12; 10:36 AM EST = +17; signal line is +15

12/19/12; 9:53 AM EST = +1; signal line is +16 but algorithm says stay long

12/19/12; 9:31 AM EST = +17; signal line is +16

12/19/12; 9:00 AM EST = +33; signal line is +16

12/18/12; 10:30 AM EST = +33; signal line is +17

12/16/12; 7:00 PM EST = +17; signal line is +16

12/12/12; 3:28 PM EST = +17; signal line is +16

12/12/12; 12:39 AM EST = +33; signal line is +16

12/12/12; 9:54 AM EST = +17; signal line is +13

12/11/12; 3:52 AM EST = +33; signal line is +12

12/11/12; 2:59 PM EST = +17; signal line is +11

12/11/12; 9:52 AM EST = +33; signal line is +11

12/11/12; 9:35 AM EST = +17; signal line is +10; go long 1426; (Benchmark SPX for 2012 = +13.4%)(Keybot this trade = -1.4%; Keybot for 2012 = +20.2%)(Actual this trade = -1.5%; Actual for 2012 = +18.0%)

STOCK MARKET BULLISH -- LONG -- CAUTION -- TURN APPEARS IMMINENT

Keybot the Quant is long going into the Thursday session. The algo wants to flip to the short side (the algo number is under the signal line) but is held back until all the proper parameters fall into place. For Thursday, watch JJC 45.46 (copper). Price sits just below which creates market negativity. The bears want JJC to continue dropping. The bulls need JJC to move back above 45.46 asap.  Copper is currently down in trading heading for another weak day but the U.S. opening bell remains six hours away. The quant also continues to track VIX 15.88 and UTIL 456.78 which are currently contributing bearishly to markets.

For the SPX, starting at 1436, the bulls need to touch 1448 to ignite an upside acceleration. The bears have an easier road ahead, only needing to see red futures overnight (the S&P's are down 3 as this is typed), and a downward acceleration will occur at the open. A move thru 1437-1447 is sideways action today. If the SPX drops under 1436 at the opening bell and remains under for several minutes, it is highly likely that Keybot will flip to the short side. A turn to the short side appears imminent. Markets remain unstable, extreme caution is warranted.

12/23/12; 7:00 PM EST =

12/21/12; 10:00 AM EST =

12/19/12; 11:54 AM EST = +1; signal line is +14 but algorithm says stay long

12/19/12; 11:34 AM EST = +17; signal line is +15

STOCK MARKET BULLISH -- LONG -- CAUTION

Keybot the Quant is long. The algo continues with a very active day.  Keybot wants to go short but the internal programming rules will not align properly as yet.  If the SPX drops under 1430.50, now at 1442, Keybot will likely flip short. The higher volatility, VIX now approaching 17, and weaker copper is causing market negativity but the bulls are stubborn. The bulls are in control but the action is unstable and erratic. Exercise caution.

12/23/12; 7:00 PM EST =

12/21/12; 10:00 AM EST =

12/19/12; 11:54 AM EST = +1; signal line is +14 but algorithm says stay long

12/19/12; 11:34 AM EST = +17; signal line is +15

12/19/12; 11:06 AM EST = +1; signal line is +14 but algorithm says stay long

12/19/12; 10:36 AM EST = +17; signal line is +15

12/19/12; 9:53 AM EST = +1; signal line is +16 but algorithm says stay long

STOCK MARKET BULLISH -- LONG -- CAUTION

Keybot the Quant is long as the algo prints another number today. JJC fell under 45.47 which creates market negativity. Watch to see if this behavior continues.  Keybot wants to go short right now but internal programming rules are holding it back.  The algo will likely trigger short if SPX 1430.50 fails and holds for several minutes. Thus, the quant remains long for now.

12/21/12; 10:00 AM EST =

12/19/12; 9:53 AM EST = +1; signal line is +16 but algorithm says stay long

12/19/12; 9:31 AM EST = +17; signal line is +16

STOCK MARKET BULLISH -- LONG -- CAUTION

Keybot the Quant is long. The algo prints a number after the opening bell.  Volatility is higher again, well above 15.85, so this creates market negativity. Copper is weak today. JJC drops like a stone to the 45.47 bull-bear line (use this instead of 45.50) and is now printing 45.52, hanging on to the bull side by a sliver. The utilities drop a touch with UTIL at 459 remaining under 466 in the bear camp.  The bull-bear struggle continues. If copper fails with the JJC dropping under 45.47 today, and the SPX drops under 1430, Keybot will likely trigger to the short side. Otherwise, the bulls keep driving the bus.

12/23/12; 7:00 PM EST =

12/21/12; 10:00 AM EST =

12/19/12; 9:31 AM EST = +17; signal line is +16

12/19/12; 9:00 AM EST = +33; signal line is +16

STOCK MARKET BULLISH -- LONG -- CAUTION

Keybot the Quant remains long. The pre-scheduled number results in one tick lower for the signal line. The bulls are driving the bus. Watch the VIX 15.85, JJC 45.50 and UTIL 466 bull-bear lines in the sand to gauge which side is winning. The bulls are set for a bounce at the opening bell. Note the copper weakness this morning. Markets are erratic and unstable, stay alert.

12/23/12; 7:00 PM EST =

12/21/12; 10:00 AM EST =

12/19/12; 9:00 AM EST = +33; signal line is +16

12/18/12; 10:30 AM EST = +33; signal line is +17

STOCK MARKET BULLISH -- LONG -- CAUTION

Keybot the Quant is long as another melt-up day ends. Watch VIX 15.85, JJC 45.50 and UTIL 466. Volatilty and copper are bullish while utilities are bearish. Any change to any of these three parameters will move the markets in that respective direction. The bulls are in control. For the SPX, starting at 1447, the bulls only need one point higher, to poke up thru 1448 and an upside accelration will occur.  The bears need to push under 1431, sixteen points lower to regain their mojo.  A move thru 1432-1447 is sideways action. Keybot prints a pre-scheduled number before the open so the action can be updated at that time. Markets remain erratic and unstable.

12/21/12; 10:00 AM EST =

12/19/12; 9:00 AM EST =

12/18/12; 10:30 AM EST = +33; signal line is +17

12/16/12; 7:00 PM EST = +17; signal line is +16

STOCK MARKET BULLISH -- LONG -- CAUTION

Keybot the Quant is long as the day moves along. The algo prints a number today as volatility dropped like a stone this morning placing the bulls in stronger control.  The SPX accelerated up thru the 1430's and now sits at 1441 resistance. The VIX is 15.77 up off the LOD at 15.49. Keep watching the bull-bear line at VIX 15.85. The quant is also now showing interest in copper and is tracking JJC 45.50 as a bull-bear line in the sand, the JJC remains comfortably above 45.50. The bulls are driving the bus, VIX 15.85 is key.

12/23/12; 7:00 PM EST =

12/21/12; 10:00 AM EST =

12/19/12; 9:00 AM EST =

12/18/12; 10:30 AM EST = +33; signal line is +17

12/16/12; 7:00 PM EST = +17; signal line is +16

STOCK MARKET BULLISH -- LONG -- CAUTION

Keybot the Quant is long moving into the Tuesday session and did not print any numbers yesterday. Monday was a flat session resulting in a melt-up in the afternoon.  The VIX fell substantially during the last hour but remains above 15.83 on the bear side.  The bulls can only make further gains to the upside if the VIX drops under 15.83.  For the SPX, starting at 1430, the bulls have the easy road, only needing to see positive futures, which are in place currently, and an upside acceleration will occur for the SPX. 1433 is strong resistance, then 1435, then 1438, then 1441. The bears must retrace yesterday's up move to regain their mojo, a formidable task but not impossible, especially due to the unpredictable fiscal cliff negotiations. A move thru 1415-1430 is sideways action today. Markets remain unstable. VIX 15.83 is key.

12/23/12; 7:00 PM EST =

12/21/12; 10:00 AM EST =

12/19/12; 9:00 AM EST =

12/16/12; 7:00 PM EST = +17; signal line is +16

STOCK MARKET BULLISH -- LONG -- CAUTION

Keybot the Quant is long to begin the new trading week. The algo continues to track three key sectors that are most greatly impacting market movement; VIX 15.80, RTH 44.35 and XLF 15.77. Volatility is contributing bearishly to markets while retail and financials are causing market bullishness. Any change to these three parameters will push markets in the same respective direction.  Semiconductors and copper may become more important as the week progresses.

For the SPX for Monday, the bulls need to push up thru 1419.50 and an upside acceleration will occur.  The bears need to push under 1412 and a downside acceleration will occur. A move thru 1413-1418 is sideways action. Markets remain extremely unstable, extreme caution is warranted. If either the RTH or XLF turns bearish as described above, and the SPX drops under 1412 heading lower, Keybot will likely flip short, otherwise, the bulls will continue driving the bus. Keybot prints one pre-scheduled number on Wednesday and one on Friday this week.

12/23/12; 7:00 PM EST =

12/21/12; 10:00 AM EST =

12/19/12; 9:00 AM EST =

12/16/12; 7:00 PM EST = +17; signal line is +16

12/12/12; 3:28 PM EST = +17; signal line is +16

STOCK MARKET BULLISH -- LONG -- CAUTION

Keybot the Quant is long thru the weekend.  The markets are a bull-bear standoff with volatility remaining elevated, the VIX now at 17, helping the bears, and XLF and RTH remaining elevated, helping the bulls. One side will flinch. These three parameters will remain key for the trading early next week. The levels of interest can be identified for Monday trading once Keybot prints the Sunday pre-scheduled number tomorrow.

12/16/12; 7:00 PM EST =

12/12/12; 3:28 PM EST = +17; signal line is +16

STOCK MARKET BULLISH -- LONG -- CAUTION

Keybot the Quant is long going into the Friday session. The Thursday session was calm.  The algo motored along all day without printing any numbers.  The bulls and bears continue to fight it out.  Volatility jumped higher, the VIX now well above 16, so the bears puffed their chests and pushed markets lower.  Financials and the retail sector, however, remain elevated in the bull camp.  Watch VIX 15.79, XLF 15.77 and RTH 44.35.  The market bulls want to push the VIX back under 15.79 to send the broad indexes higher.  The market bears want to push the XLF below 15.77, or the RTH below 44.35, since either of these failures will significantly increase market selling.

For the SPX starting at 1419, the bulls need to move above 1431 to create an upside acceleration. The bears have an easier path today, only needing to push the SPX under the strong 1416 support and that will ignite a downside acceleration to test the important 1411-1413 support. A move thru 1417-1430 is sideways action. If either the RTH or XLF fails as described above, and if the SPX is under 1416 and heading lower, Keybot will likely flip short.  If the XLF stays above 15.77 and the RTH stays above 44.35, Keybot will likely remain long. Markets are extremely erratic and unstable, exercise caution.

12/16/12; 7:00 PM EST =

12/12/12; 3:28 PM EST = +17; signal line is +16

STOCK MARKET BULLISH -- LONG -- CAUTION

Keybot the Quant remains long but the algo number is only one point from the signal line showing that the markets remain a knock-down, drag-out, bull-bear battle. The VIX moving above 15.79 supplies bear fuel. The RTH 44.35 is a major focus today (the quant may adjust this number a few pennies either way once trading begins). The bulls need to push the VIX under 15.79 to regain their mojo; the bears need to push the RTH under 44.35 to create market selling pressure. Interestingly, Retail Sales data hits in three hours and this will directly impact the RTH.

For the SPX starting at 1428 today, the bulls need to travel higher to touch the 1439 handle, if so, an upside acceleration will occur with the SPX moving to 1441 and 1446. The bears have an easier road ahead only needing to push the SPX one point lower, under 1427, and a downside acceleration will occur.  A move thru 1428-1437 is sideways action today. Markets remain erratic and unstable, yesterday's action proves this point as well as Keybot's current status.  VIX 15.79, RTH 44.35 and SPX 1427 and 1439, will dictate market direction today. If the RTH drops under 44.35, and the SPX drops under 1427 and heads lower, Keybot will likely flip to the short side. The importance of the Retail Sales data this morning cannot be understated.

12/16/12; 7:00 PM EST =

12/12/12; 3:28 PM EST = +17; signal line is +16

12/12/12; 12:39 AM EST = +33; signal line is +16

STOCK MARKET BULLISH -- LONG -- CAUTION

Keybot the Quant is long but note that the algo number is now only one measly point from the signal line. The bears are pushing back today with the VIX now back above 15.79 again.  Interestingly, if the RTH drops under 44.35, Keybot will likely flip short.

12/16/12; 7:00 PM EST =

12/12/12; 3:28 PM EST = +17; signal line is +16

12/12/12; 12:39 AM EST = +33; signal line is +16

STOCK MARKET BULLISH -- LONG -- CAUTION

Keybot the Quant is long as the algo prints another number today after the Fed announcement. Volatility drops lower, the VIX is now back under 15.79, bullish, continuing the seesaw fight. XLF is 16.26 exploding higher as the financials are favored on Fed day. RTH is 44.92 well above the 44.35 bull-bear line. The SPX broke thru 1433 so a several handle acceleration resulted. Watch VIX 15.79.

12/16/12; 7:00 PM EST =

12/12/12; 12:39 AM EST = +33; signal line is +16

12/12/12; 9:54 AM EST = +17; signal line is +13

STOCK MARKET BULLISH -- LONG -- CAUTION

Keybot the Quant remains long.  Each day, however, provides new drama. Volatility is higher once again, helping the bears, the VIX is above 16.00, well above the critical 15.79 bull-bear line. This helps create market negativity. The bears will now focus on pushing the RTH under 44.35. The bulls will focus on pushing the VIX back under 15.79. The SPX tested the 1433 resistance today and was pushed back on the first attempt.  The markets remain erratic and unstable.

12/16/12; 7:00 PM EST =

12/12/12; 9:54 AM EST = +17; signal line is +13

12/11/12; 3:52 AM EST = +33; signal line is +12

STOCK MARKET BULLISH -- LONG -- CAUTION

Keybot the Quant is long and prints two additional numbers late afternoon Tuesday. The market bears were pushing back by late day driving the VIX back above 15.79 but in the final minutes volatility folded like a cheap suit and the bulls closed the day in a comfortable position. The algo number is now 21 points above the signal line showing firm control by the bulls.  The quant is tracking three sectors with interest; VIX 15.79, now at 15.57 causing bullishness, XLF 15.70, now at 16.07 causing bullishness and RTH 44.35, now at 44.95 causing bullishness. The bulls need to keep these three parameters in their camp and gaining ground higher which will cause markets to continue higher. The bears need to pull at least one of the three back into the bear camp to initiate market selling.

For the SPX starting at 1428, the bulls need to push above 1434 to accelerate the upside. The bears need to push under 1419 to accelerate the downside. A move thru 1420-1433 is sideways action. Markets remain erratic and unstable as verified by Tuesday's action. Wednesday's trading may prove dramatic with the Fed rate announcement and press conference on tap.

12/16/12; 7:00 PM EST =

12/11/12; 3:52 AM EST = +33; signal line is +12

12/11/12; 2:59 PM EST = +17; signal line is +11

12/11/12; 9:52 AM EST = +33; signal line is +11

12/11/12; 9:35 AM EST = +17; signal line is +10; go long 1426; (Benchmark SPX for 2012 = +13.4%)(Keybot this trade = -1.4%; Keybot for 2012 = +20.2%)(Actual this trade = -1.5%; Actual for 2012 = +18.0%)

STOCK MARKET BULLISH -- LONG -- CAUTION

Keybot the Quant flips to the long side after the open today at SPX 1426.  Volatility drops with the VIX falling thru 15.79 which is a very bullish signal. The four-day indecision finally ends. The algo lost a percent and one-half on the last trade as the drama played out. Watch VIX 15.79 moving forward as a major bull-bear signal.  Stay on guard for a whipsaw which would not be surprising today or tomorrow but this will not occur unless volatility moves higher.

12/16/12; 7:00 PM EST =

12/11/12; 9:52 AM EST = +33; signal line is +11

12/11/12; 9:35 AM EST = +17; signal line is +10; go long 1426; (Benchmark SPX for 2012 = +13.4%)(Keybot this trade = -1.4%; Keybot for 2012 = +20.2%)(Actual this trade = -1.5%; Actual for 2012 = +18.0%)

12/9/12; 7:00 PM EST = +17; signal line is +9 but algorithm says stay short

12/7/12; 10:00 AM EST = +17; signal line is +8 but algorithm says stay short

12/7/12; 9:00 AM EST = +19; signal line is +6 but algorithm says stay short

12/5/12; 11:34 AM EST = +19; signal line is +6 but algorithm says stay short

12/5/12; 10:40 AM EST = +3; signal line is +5

12/5/12; 9:30 AM EST = +19; signal line is +4 but algorithm says stay short

12/4/12; 1:47 PM EST = +3; signal line is +2 but algorithm says stay short

12/4/12; 11:05 AM EST = -13; signal line is +2; go short 1407; (Benchmark SPX for 2012 = +12.0%)(Keybot this trade = -0.1%; Keybot for 2012 = +21.6%)(Actual this trade = -0.1%; Actual for 2012 = +19.5%)

STOCK MARKET BEARISH -- SHORT -- CAUTION -- TURN APPEARS IMMINENT

Keybot the Quant remains short as markets move thru the sideways 1413-1421 channel since late last Thursday. The algo motored along without printing any numbers today. The SPX punched up thru 1420 but the VIX prevented the bulls from making any headway higher.  For Tuesday, watch VIX 15.79, if it fails, the bulls are in clover and Keybot will filp long. The bears will try to maintain the VIX above 15.79.  For the SPX starting at 1419, the bulls need to touch the 1422 handle and an upside acceleration of several handles will occur. Keybot likely wants to see 1425.90 to flip to the long side, if the VIX does not fall under 15.79. The bears need to push the SPX under 1416 to accelerate the downside. A move thru 1417-1421 is sideways action. Markets remain very indecisive, unstable and erratic. Watch VIX 15.79 and SPX 1426.

12/16/12; 7:00 PM EST =

12/9/12; 7:00 PM EST = +17; signal line is +9 but algorithm says stay short

STOCK MARKET BEARISH -- SHORT -- CAUTION -- TURN APPEARS IMMINENT

Keybot the Quant is short going into the new week of trading. As mentioned in the prior post, VIX 15.82 runs the show when the opening bell rings tomorrow. Bulls will be running strongly higher if they can push the VIX under 15.82, in addition, this would provide the push that Keybot likely needs to commit to the long side.  Bears will be happy if they hold the line and prevent VIX 15.82 from failing. For the SPX starting at 1418, the bulls only need to see two points higher, to move up and over 1420, and hold it for several minutes, to ignite an upside acceleration that would likely be in concert with the VIX dropping under 15.82 and Keybot flipping long.  If the markets pop at the opening bell but the VIX does not drop under 15.82, the bulls got nothing and the markets will reverse to the downside.  The bears need to push under 1411 to create a downside market acceleration. A move thru 1412-1419 is sideways action. The broad indexes are extremely unstable, erratic and unpredictable. The action with the quant over the last couple days illustrates this indecisive behavior. VIX 15.82 will pick the winner tomorrow. Keybot does not print any pre-scheduled numbers this week so the algo will be purely at the mercy of the market action.

12/16/12; 7:00 PM EST =

12/9/12; 7:00 PM EST = +17; signal line is +9 but algorithm says stay short

12/7/12; 10:00 AM EST = +17; signal line is +8 but algorithm says stay short

STOCK MARKET BEARISH -- SHORT -- CAUTION -- TURN APPEARS IMMINENT

Keybot the Quant remains short thru the weekend. The algo did not print any numbers on Friday except for the pre-scheduled numbers. The market action is very interesting with the bulls and bears locked in a fierce struggle, the markets should break one way or the other at anytime. The algo wants to flip to the long side for three days but the internal programming rules keep holding it back. Keybot needs to confirm the intraday highs as they occur via a timer and each time the quant wants to lock in the move to the bull side, it fails, so the waiting game continues.  Volatilty is very important come Monday morning. Watch VIX 15.82; now at 15.90. If the VIX falls under 15.82, the markets will spike higher, the SPX will be moving up thru the 1420's, and Keybot should immediately flip to the long side. If the VIX stays above 15.82, more of this sideways market funk will continue. Next week's road map can be developed once the Sunday pre-scheduled number prints tomorrow. The quant wants to be long but the bears are holding on by a hair. Monday may be a dramatic day--for either side. The markets are extremely erratic and unstable.

12/9/12; 7:00 PM EST =

12/7/12; 10:00 AM EST = +17; signal line is +8 but algorithm says stay short

STOCK MARKET BEARISH -- SHORT -- CAUTION -- TURN APPEARS IMMINENT

Keybot the Quant remains short. This is a big surprise due to the opening pop but the SPX could not hold the higher levels after the bell, failing after a couple minutes.  The VIX remains above 15.85.  The SOX and XLF are firmly bullish.  The algo now wants to see SPX 1420.34 hold for a few minutes to lock in the long side. For now, the bears continue to drive the bus but the bulls are on the verge of grabbing control. Keybot will flip long if 1420.34 can hold.

12/9/12; 7:00 PM EST =

12/7/12; 10:00 AM EST = +17; signal line is +8 but algorithm says stay short

12/7/12; 9:00 AM EST = +19; signal line is +6 but algorithm says stay short

12/5/12; 11:34 AM EST = +19; signal line is +6 but algorithm says stay short

STOCK MARKET BEARISH -- SHORT -- CAUTION -- TURN APPEARS IMMINENT

Keybot the Quant is short but the algorithm appears poised to flip to the long side at the opening bell.  The bears kept the futures negative overnight until the Jobs Report which catapults the S&P's up 7. The SPX likely needs to stay above 1418.18 (higher than the 1414 mentioned last evening) for several minutes for Keybot to lock in the move to the bull side. As the markets bounce at the opening bell, watch to see if the VIX stays above 15.85, or not. If so, then the bears may recover. If the VIX drops like a rock, the bulls will rule into the weekend. There is another pre-scheduled number on tap at 10 AM, so the action can be updated at mid-morning. Looks like the bulls are going to grab back control.

12/9/12; 7:00 PM EST =

12/7/12; 10:00 AM EST =

12/7/12; 9:00 AM EST = +19; signal line is +6 but algorithm says stay short

12/5/12; 11:34 AM EST = +19; signal line is +6 but algorithm says stay short

STOCK MARKET BEARISH -- SHORT -- CAUTION

Keybot the Quant is short. The algo did not print any numbers today.  SOX is well above 373.00 and bullish and XLF is above 15.68 and bullish. The VIX is above 15.85 and bearish. Any change to these three parameters will affect markets sending them in the same respective direction.  The bulls only need to see positive futures overnight and that will create an upside acceleration in the SPX once the opening bell rings.  The wild card is the Jobs Report in the morning since it may provide a market surprise. If the SPX moves above 1414, Keybot will likely flip to the long side. The bears need to push under 1406 to create a downside acceleration thru 1403 and down to 1399. Keybot prints a pre-scheduled number at 9 AM tomorrow so the action can be updated at that time. Another pre-scheduled number prints at 10 AM tomorrow.

12/9/12; 7:00 PM EST =

12/7/12; 10:00 AM EST =

12/7/12; 9:00 AM EST =

12/5/12; 11:34 AM EST = +19; signal line is +6 but algorithm says stay short

12/5/12; 10:40 AM EST = +3; signal line is +5

STOCK MARKET BEARISH -- SHORT -- CAUTION

Keybot the Quant remains short into the Thursday session. Keybot wants to go long (algo number is above the signal line) but the internals did not allow the move, thus, tomorrow will have to tell the tale.  SOX leaked lower into the close but remains well above 372.80. XLF is also contributing bullishly staying above 15.68.  The interesting aspect of today was that Keybot came within seconds of flipping long five different times this afternoon, but did not. Very interesting market behavior. For Thursday, for the SPX, starting at 1409, the bulls need to touch 1416 to create an upside acceleration. If the SPX touches 1416, Keybot will likely flip long. The bears need to move under 1398 to create a downside acceleration.  A move thru 1399-1414 is sideways action. In a nutshell, watch SOX 372.80, XLF 15.68 and SPX 1416 to determine market direction.

12/7/12; 9:00 AM EST =

12/5/12; 11:34 AM EST = +19; signal line is +6 but algorithm says stay short

12/5/12; 10:40 AM EST = +3; signal line is +5

STOCK MARKET BEARISH -- SHORT -- CAUTION

Keybot the Quant remains short. SOX and XLF are firmly in the bull camp and driving the markets higher. The algo wants to turn bullish here at SPX 1413 and higher but the internal programming rules will not allow it to click into place, yet.

12/7/12; 9:00 AM EST =

12/5/12; 11:34 AM EST = +19; signal line is +6 but algorithm says stay short

12/5/12; 10:40 AM EST = +3; signal line is +5

STOCK MARKET BEARISH -- SHORT -- CAUTION

Keybot the Quant remans short. Semiconductors broke down again, the SOX dropping under 372.75. XLF is 15.70 on the bull side.

12/7/12; 9:00 AM EST =

12/5/12; 10:40 AM EST = +3; signal line is +5

12/5/12; 9:30 AM EST = +19; signal line is +4 but algorithm says stay short

STOCK MARKET BEARISH -- SHORT -- CAUTION

Keybot the Quant remains short as the Wednesday session begins. The financials were goosed via C and BAC a short time ago. The XLF is 15.74 back above the 15.69 bull-bear line in the sand and now creating market bullishness. The algo wants to flip back to the long side but internal programming rules are holding it back. If the SPX moves above 1413.14, Keybot will likely flip long, otherwise, markets muddle along sideways.

12/7/12; 9:00 AM EST =

12/5/12; 9:30 AM EST = +19; signal line is +4 but algorithm says stay short

12/4/12; 1:47 PM EST = +3; signal line is +2 but algorithm says stay short

STOCK MARKET BEARISH -- SHORT -- CAUTION

Keybot the Quant is short going into the Wednesday session. Keybot prints one point above the signal line which places the quant in the position to go long but the algo remains short for now. This behavior shows the ongoing bull-bear struggle with both sides battling.  The drama will revolve around XLF 15.67 which will directly dictate broad market direction at the opening bell. If the XLF stays under 15.67, the markets move lower. If the XLF moves above 15.67, the markets will recover.  For the SPX, the bears need to push under the strong 1403 support and a downside acceleration will occur with the SPX dropping under 1400. The bulls need to push over 1413 and an upside acceleration will occur.  If the XLF moves above 15.67, and the SPX moves above 1413, Keybot will likely whipsaw from yesterday's move and flip long.  Otherwise, the bears will remain in control.  SOX 372.75 remains important as well. If Keybot remains short into and beyond lunch time then the quant will likely stay short for a few days time.

12/7/12; 9:00 AM EST =

12/4/12; 1:47 PM EST = +3; signal line is +2 but algorithm says stay short

SPX Daily Chart Showing Keybot the Quant Algorithm Turns

Current signal remains valid until a change occurs.
12/4/12:  Keybot the Quant flipped to the short side at 11:05 AM EST at SPX 1407; for the year thus far, SPX Benchmark is up 12.0%; Keybot is up 21.6%; Keybot actual trading is up 19.5%. Stay alert for a whipsaw.
11/28/12:  Keybot the Quant flipped to the long side at 3:51 PM EST at SPX 1409; for the year thus far, SPX Benchmark is up 12.0%; Keybot is up 21.7%; Keybot actual trading is up 19.6%.
11/27/12: Keybot the Quant flipped the short side at 3:56 PM EST at SPX 1399; for the year thus far, SPX Benchmark is up 11.2%; Keybot is up 22.4%; Keybot actual trading is up 21.1%.
11/19/12:  Keybot the Quant flipped to the long side at 9:30 AM EST at SPX 1370; for the year thus far, SPX Benchmark is up 8.9%; Keybot is up 20.3%; Keybot actual trading is up 17.5%.
10/19/12:  Keybot the Quant flipped to the short side at 11:49 AM EST at SPX 1442; for the year thus far, SPX Benchmark is up 14.6%; Keybot is up 15.3%; Keybot actual trading is up 8.6%.
10/16/12: Keybot the Quant flipped to the long side at 9:31 AM EST at SPX 1446; for the year thus far, SPX Benchmark is up 14.9%; Keybot is up 15.6%; Keybot actual trading is up 9.3%.
10/9/12: Keybot the Quant flipped to the short side at 10:42 AM EST at SPX 1452; for the year thus far, SPX Benchmark is up 15.4%; Keybot is up 15.2%; Keybot actual trading is up 8.8%.
10/1/12: Keybot the Quant flipped to the long side at 10:00 AM EST at SPX 1453; for the year thus far, SPX Benchmark is up 15.5%; Keybot is up 15.3%; Keybot actual trading is up 8.9%.
9/17/12: Keybot the Quant flipped to the short side at 2:11 PM EST at SPX 1460; for the year thus far, SPX Benchmark is up 16.1%; Keybot is up 14.7%; Keybot actual trading is up 7.7%.
9/4/12: Keybot the Quant flipped to the long side at 2:13 PM EST at SPX 1402; for the year thus far SPX Benchmark is up 11.5%; Keybot is up 10.6%; Keybot actual trading is up 3.5%.
9/4/12: Keybot the Quant flipped to the short side at 10:34 AM EST at SPX 1399; for the year thus far SPX Benchmark is up 11.2%; Keybot is up 10.8%; Keybot actual trading is up 3.8%.
8/3/12: Keybot the Quant flipped to the long side at 9:30 AM EST at SPX 1377; for the year thus far SPX Benchmark is up 9.5%; Keybot algo is up 9.2%; Keybot actual trading is up 2.5%.
8/2/12: Keybot the Quant flipped to the short side at 11:42 AM EST at SPX 1360; for th eyear thus far SPX Benchmark is up 8.1%; Keybot algo is up 10.4%; Keybot actual trading is up 5.8%.
7/26/12: Keybot the Quant flipped to the long side at 9:30 AM EST at SPX 1349; for the year thus far SPX Benchmark is up 7.2%; Keybot algo is up 9.6%; Keybot actual trading is up 5.4%.

STOCK MARKET BEARISH -- SHORT -- CAUTION

Keybot the Quant is short but note the wild move higher in semiconductors. The bulls are not giving up pushing SOX back above 372.75.  XLF remains bearish under 15.67. If XLF moves above 15.67, and SPX above 1413, Keybot may whipsaw back to the long side. XLF 15.67 is key.

12/7/12; 9:00 AM EST =

12/4/12; 1:47 PM EST = +3; signal line is +2 but algorithm says stay short

12/4/12; 11:05 AM EST = -13; signal line is +2; go short 1407; (Benchmark SPX for 2012 = +12.0%)(Keybot this trade = -0.1%; Keybot for 2012 = +21.6%)(Actual this trade = -0.1%; Actual for 2012 = +19.5%)

STOCK MARKET BEARISH -- SHORT -- CAUTION

Keybot the Quant flips short at SPX 1407 a short time ago. SOX 372.75 and XLF 15.67 broke down (the XLF number was adjusted by Keybot after the opening bell). Stay alert for a whipsaw. The last trade was flat; Keybot exited SPY and entered SH. The bulls and bears will continue to fight but for now the bears have retaken control of the markets.

12/9/12; 7:00 PM EST =

12/7/12; 10:00 AM EST =

12/7/12; 9:00 AM EST =

12/4/12; 11:05 AM EST = -13; signal line is +2; go short 1407; (Benchmark SPX for 2012 = +12.0%)(Keybot this trade = -0.1%; Keybot for 2012 = +21.6%)(Actual this trade = -0.1%; Actual for 2012 = +19.5%)

12/4/12; 10:58 AM EST = -13; signal line is +4 but algorithm says stay long

12/4/12; 10:31 AM EST = +3; signal line is +4 but algorithm says stay long

12/4/12; 9:40 AM EST = +19; signal line is +5

12/3/12; 3:55 PM EST = +3; signal line is +4 but algorithm says stay long

12/3/12; 3:39 PM EST = +19; signal line is +5

12/3/12; 3:21 PM EST = +3; signal line is +5 but algorithm says stay long

12/3/12; 9:59 AM EST = +19; signal line is +5

12/3/12; 9:31 AM EST = +35; signal line is +4

12/2/12; 7:00 PM EST EOM = +19; signal line is +2

11/30/12; 11:30 AM EST = +19; signal line is +2

11/29/12; 9:30 AM EST = +35; signal line is +1

11/28/12; 3:51 PM EST = +19; signal line is +0; go long 1409; (Benchmark SPX for 2012 = +12.0%)(Keybot this trade = -0.7%; Keybot for 2012 = +21.7%)(Actual this trade = -1.5%; Actual for 2012 = +19.6%)

STOCK MARKET BULLISH -- LONG -- CAUTION -- TURN MAY BE IMMINENT

Keybot the Quant remains long as the drama plays out. The SPX dipped at the open but recovered. The SOX jumped above 372.75 and is fighting to maintain that level to help the bulls. The algo prints one number thus far today showing the bulls back in control, however, anything can happen; watch SOX 372.75 and XLF 15.65.  The SPX key level to watch today has now dropped to 1407.57.  Thus, if SOX falls under 372.75 and SPX under 1407.5, Keybot will likely flip short.

12/7/12; 10:00 AM EST =

12/7/12; 9:00 AM EST =

12/4/12; 9:40 AM EST = +19; signal line is +5

12/3/12; 3:55 PM EST = +3; signal line is +4 but algorithm says stay long

STOCK MARKET BULLISH -- LONG -- CAUTION -- TURN MAY BE IMMINENT

Keybot is long going into the Tuesday session but only a hair away from flipping short. The algorithm wants to go short, the algo number is under the signal line, but internal programming rules are holding it back from officially triggering. SPX 1408.46 is a magic number for tomorrow since a drop thru this level, that holds for five or more minutes, will likely result in Keybot flipping to the bear side.  SOX must stay under 372.75 for the bears to push lower. XLF 15.65 is also important. If the bears simply push gently lower after the opening bell tomorrow they can likely develop substantive downside. If, however, the bears gap the markets lower tomorrow morning, the decision on direction likely will not occur until about 90 minutes of trading plays out. The bears want SPX under 1408.46 and then XLF under 15.65.  The bulls want to keep the SPX above 1408.46, the XLF above 15.65, and bring the SOX back above 372.75, if so, the bulls will continue driving the bus merrily along. The bulls and bears are in a big fight right now.  Tomorrow, one side or the other, will emerge victorious.

12/7/12; 10:00 AM EST =

12/7/12; 9:00 AM EST =

12/3/12; 3:55 PM EST = +3; signal line is +4 but algorithm says stay long

12/3/12; 3:39 PM EST = +19; signal line is +5

12/3/12; 3:21 PM EST = +3; signal line is +5 but algorithm says stay long