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

Keybot the Quant remains long as the new week of trading begins. Out of the gate the algo prints a number which triggers a desire to go short but other internal programming rules are not in line as yet to allow the move to the short side. One of the key critieria the algo would need to see is last Friday's low at the 1652.50-ish area. The SPX is now printing a 1664 handle comfortably twelve points above. Keybot will not flip short unless the SPX drops under 1653-ish today. Remember, Keybot is not programmed to catch the exact tops and exact bottoms so it will always relinquish a few handles at the turns.

Volatility jumps at the bell which creates the market weakness. The algo is tracking VIX 13.10-13.11 and the current print is 13.24, above, so the bears are making another run again trying to push the indexes lower. Each time recently that the VIX has turned bearish (moving higher), the bulls came along and jammed it lower to save the day for the SPX. Watch VIX 13.10-ish closely today since it will tell you the preferred direction; above 13.10 is happy bears and below 13.10 is happy bulls. Watch SPX 1653-ish since that is the area today that Keybot would likely flip short, if it occurs. The imminent turn notation is highlighted in the title again. Keybot is ready to go short but the bears have to push the broad indexes lower to show they mean business and allow the algo to commit.

5/26/13; 7:00 PM EST =

5/20/13; 9:30 AM EST = +32; signal line is +42 but algorithm says stay long

5/19/13; 7:00 PM EST = +46; signal line is +41