STOCK MARKET BULLISH -- LONG - CAUTION

Keybot the Quant is long moving into the new week of trading. Lots of theatrics occur last week with the wild moves in volatility but the bears continue to end up on the short end. The algo continues to track volatility as the main market driver currently. Watch VIX 13.18; bulls win above, bears win below. If the VIX moves above 13.18, and the SPX drops under 1652.50, Keybot will likely flip to the short side.

For the SPX starting at 1667, the bulls are on easy street only needing to see positive futures overnight Sunday, and the upside thrust will continue with the SPX moving into the 1670's. The bears need to keep futures negative overnight and push under 1652.50 after the opening bell tomorrow to accelerate the downside. A move through 1653-1667 is sideways action. Keybot does not print any pre-scheduled numbers during trading this week so market forces will dictate all the action. Markets remain highly unstable and erratic.  The algo number is only five points from the signal line so, despite the strong rally, the markets are very vulnerable to a pull back.

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

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

5/17/13; 10:00 AM EST = +46; signal line is +40