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

Keybot the Quant is long as today's drama plays out. The algo wants to go short right now but the internal programming rules are not latching in place as yet. GTX falls under 4780 creating market negativity. Note the boost in utilities. The bulls are jamming UTIL to 506.57 since they know the consequences next week if they fail. UTIL is now printing 506.20 after running up to 507 minutes ago, spanked down from the 506.57. Isn't it amazing that Keybot can identify these price levels before they occur?

Financials, XLF, remain weak causing market negativity. Watch UTIL 506.57 and GTX 4780. Bulls need one or both of these levels to prove they want to take the indexes higher. If not, markets will weaken again. The SPX dropped under the 1777 after the open but there were whipsaw rules in play that prevented the move short. A timer has now expired and no longer affects the algo. If the SPX drops below 1772.26 today, and holds it under about 5 minutes, Keybot will likely flip short. The bears need to keep UTIL under 506.57 to prove they mean business into next week. Bulls need GTX 4780 or UTIL 506.57 to prove they want to take equities higher. For now, the bulls remain in control. Watch GTX 4780, UTIL 506.57 and SPX 1722.26.

2/2/14; 7:00 PM EST EOM =

1/31/14; 10:00 AM EST = +2; signal line is +6 but algorithm remains long

1/31/14; 9:36 AM EST = +2; signal line is +8 but algorithm remains long

1/30/14; 11:23 AM EST = +16; signal line is +10; go long 1791; (Benchmark SPX for 2014 = -3.1%)(Keybot this trade = +2.0%; Keybot for 2014 = +1.3%)(Actual this trade = +3.7%; Actual for 2014 = +2.0%)

STOCK MARKET BULLISH -- LONG -- CAUTION

Keybot the Quant is long moving into the Friday session. The algo is tracking commodities and financials. The market bulls need XLF 21.44; now at 21.31 creating bearishness. The bears need GTX 4780; now at 4784 creating bullishness. One of these two should flinch and markets will move in that respective direction. If the status quo remains, with XLF under 21.44, and GTX above 4780, then equities will stagger sideways into the weekend.

Utilities are worth watching although they will likely not have any impact on market direction on Friday. UTIL is not a factor now since it jumped higher to 502, however, for next week the two key levels are 506.57 and 495.00. The bulls pumped the utes today to try and develop some momo to move UTIL above 505-507 before tomorrow's bell. The bulls must finish the day above UTIL 506.57 at 4 PM EST, otherwise, the market bears will receive an advantage come Monday morning. UTIL 506.57 will also indicate how strong, or not, the market rally is so watch it closely Friday afternoon (above 506.57 indicates that the rally is strong and will continue into next week; below 506.57 indicates the market rally will peter out and stall).

For the SPX starting at 1794, the bulls need to touch the 1799 handle and a big upside party will result with price moving towards 1806 and potentially 1808-1810. The bears need to push under 1777, a formidable task but not impossible, to regain their mojo. Instead, bears will focus on weakening utilities and moving GTX under 4780. A move through 1778-1798 is sideways action into the weekend. If the GTX falls under 4780, and the SPX drops under 1777, Keybot will likely flip to the short side. If XLF moves above 21.44, equities will rally far higher. Keybot prints a pre-scheduled number tomorrow morning. The caution flag remains out.

2/2/14; 7:00 PM EST EOM =

1/31/14; 10:00 AM EST =

1/30/14; 11:23 AM EST = +16; signal line is +10; go long 1791; (Benchmark SPX for 2014 = -3.1%)(Keybot this trade = +2.0%; Keybot for 2014 = +1.3%)(Actual this trade = +3.7%; Actual for 2014 = +2.0%)

STOCK MARKET BULLISH -- LONG -- CAUTION

Keybot the Quant flips to the long side a short time ago at SPX 1791. Utilities (UTIL) and commodities (GTX) create the market rally. The algo is now tracking financials. Watch XLF 21.44. XLF is now at 21.30. Above 21.44 and markets will run far higher. The bears have to hold the line and prevent XLF 21.44 while pushing utilities and commodities lower. As always, stay alert for a whipsaw today or tomorrow since utilities may collapse just as easily as they spiked.

For now, the bulls are driving the bus and have taken control of the markets with one day remaining in January. The caution flag remains out since the bulls will be in immediate trouble and can quickly lose control if GTX, now at 4790, drops under 4780, or if the utes collapse. The algorithm program gained +2% on the last trade and the actual trading triggered by the algo gained nearly +4% so that starts the year off nicely. Keybot cylced out of SDS and entered DDM. Markets remain very unstable and erratic. Stay very alert in these fast-moving and volatile markets.

1/31/14; 10:00 AM EST =

1/30/14; 11:23 AM EST = +16; signal line is +10; go long 1791; (Benchmark SPX for 2014 = -3.1%)(Keybot this trade = +2.0%; Keybot for 2014 = +1.3%)(Actual this trade = +3.7%; Actual for 2014 = +2.0%)

1/30/14; 9:36 AM EST = +16; signal line is +12 but algorithm remains short

1/29/14; 3:13 PM EST = -16; signal line is +13

1/29/14; 2:35 PM EST = +0; signal line is +16

1/29/14; 2:23 PM EST = -16; signal line is +17

1/29/14; 2:05 PM EST = -30; signal line is +20

1/29/14; 1:05 PM EST = -14; signal line is +25

1/29/14; 12:44 PM EST = +2; signal line is +25

1/28/14; 2:40 PM EST = -14; signal line is +26

1/28/14; 2:05 PM EST = -30; signal line is +28

1/28/14; 12:36 PM EST = -14; signal line is +31

1/28/14; 10:00 AM EST = -30; signal line is +33

1/27/14; 9:36 AM EST = -30; signal line is +35

1/26/14; 7:00 PM EST = -14; signal line is +38

1/24/14; 1:59 PM EST = -14; signal line is +39

1/24/14; 9:36 AM EST = +2; signal line is +41

1/23/14; 10:45 AM EST = +18; signal line is +42

1/23/14; 9:38 AM EST = +34; signal line is +42

1/21/14; 9:38 AM EST = +48; signal line is +42 but algorithm remains short

1/19/14; 7:00 PM EST = +32; signal line is +42

1/17/14; 10:00 AM EST = +32; signal line is +42

1/17/14; 9:00 AM EST = +33; signal line is +43

1/13/14; 2:28 PM EST = +33; signal line is +44; go short 1827; (Benchmark SPX for 2014 = -1.1%)(Keybot this trade = -0.5%; Keybot for 2014 = -0.7%)(Actual this trade = -1.1%; Actual for 2014 = -1.7%)

STOCK MARKET BEARISH -- SHORT -- CAUTION -- TURN MAY BE IMMINENT

Keybot the Quant remains short but wants to go long. The algo number is now above the signal line but the internal programming rules will not yet latch to allow the move. Utilities are strong today creating broad market strength. If the SPX moves above 1790.61, and remains above, Keybot will likely flip long. Thus, the imminent turn notation is added to the title line above.

1/31/14; 10:00 AM EST =

1/30/14; 9:36 AM EST = +16; signal line is +12 but algorithm remains short

1/29/14; 3:13 PM EST = -16; signal line is +13

STOCK MARKET BEARISH -- SHORT -- CAUTION

Keybot the Quant remains short. The algo was active yesterday afternoon. Note how the bulls are trying to close the distance between the algo number and the signal line. Utilities provided the drama yesterday. Continue watching 494.90 and 496.05. Bulls need UTIL 494.90 to create a recovery rally. Bulls sent GTX above 4779 to create buoyancy late day yesterday so watch this number closely. Bears need to push GTX under 4779.

For the SPX starting at 1774, the bulls need to push above 1790 to create an upside acceleration to 1796 in a heartbeat. S&P futures are pointing to a gain of about 13 points at the opening bell. The bears need to push under 1770.50 to accelerate the downside. A move through 1771-1789 is sideways action. If the bulls can push utilities above the two levels listed above, and the SPX moves above 1790, and all remain above, Keybot may flip to the long side. The caution flag is out.

1/31/14; 10:00 AM EST =

1/29/14; 3:13 PM EST = -16; signal line is +13

1/29/14; 2:35 PM EST = +0; signal line is +16

1/29/14; 2:23 PM EST = -16; signal line is +17

1/29/14; 2:05 PM EST = -30; signal line is +20

1/29/14; 1:05 PM EST = -14; signal line is +25

1/29/14; 12:44 PM EST = +2; signal line is +25

1/28/14; 2:40 PM EST = -14; signal line is +26

STOCK MARKET BEARISH -- SHORT

Keybot the Quant remains short moving into the Wednesday session. UTIL closed above 494.90 finally providing a feather for the bulls cap and creating the up move in equities today. The market bulls need UTIL 496.05, GTX 4779 and/or XLF 21.45. Any 1 of these 3 will send the SPX above 1800 and higher. The bears need to focus on pushing UTIL immediately under 494.90 again, the trap-door, which will create market selling. Thus, utilities will dictate market direction with UTIL 496.05 declaring the market bulls the winner and UTIL 494.90 declaring the market bears the winner.

For the SPX starting at 1793, the bulls need to touch the 1794 handle, only about one point, and price will accelerate higher to 1800. The bears need to push under 1779.50 to accelerate the downside. A move through 1780-1793 is sideways action. Watch the utilities.

1/31/14; 10:00 AM EST =

1/28/14; 2:40 PM EST = -14; signal line is +26

1/28/14; 2:05 PM EST = -30; signal line is +28

1/28/14; 12:36 PM EST = -14; signal line is +31

STOCK MARKET BEARISH -- SHORT

Keybot the Quant remains short as the pre-scheduled and one other number prints thus far today. The bulls are finally able to push UTIL above 494.90 so this creates broad market lift. Note how the semiconductors, SOX, collapsed to 522.26 today, testing the critical 522.40 bull-bear line in the sand, but bounced. Thus the bulls started running with the ball pushing utes higher. Watch UTIL 494.90 and SOX 522.40.

The bulls next target for UTIL is 496.05 and if that is achieved, a firm upside recovery rally will be in place for equities with the SPX heading easily up over 1800. If UTIL loses 494.90, the bulls will fold like a cheap suit with equities tumbling lower. The bulls pushed the SPX up above 1793 today but are not yet able to touch 1796. UTIL 494.90 is very important and price is now printing 495.23.

1/31/14; 10:00 AM EST =

1/28/14; 12:36 PM EST = -14; signal line is +31

1/28/14; 10:00 AM EST = -30; signal line is +33

1/27/14; 9:36 AM EST = -30; signal line is +35

STOCK MARKET BEARISH -- SHORT

Keybot the Quant remains short. The algo prints one number yesterday and will print a pre-scheduled number this (Tuesday) morning. Utilities remain weak so the markets remain weak. Watch UTIL 494.90 (now higher than previous 494.50 level) and 496.05. The bulls need to move UTIL above 494.90 asap. The bears will continue the broad market weakness as long as UTIL stays under 494.90. Bulls need GTX above 4780 which would also stop the market selling. The bears need to push SOX under 522.40 to create another broad market down leg.

For the SPX, starting at 1782, the bulls need to touch the 1796 handle and an upside acceleration will occur with price moving back above 1800. S&P futures are +9 at this writing about 5 hours before the opening bell. Bulls will need about 14 points. At the same time, the Nasdaq futures are negative pulling the opposite way. The bears need to push under SPX 1773 to accelerate the downside. A move through 1774-1795 is sideways action. The bears are driving the bus. Markets remain erratic and unstable. Bulls need UTIL 494.90, GTX 4780 and/or SPX 1796. Bears need SOX 522.40 and/or SPX 1773.

1/31/14; 10:00 AM EST =

1/28/14; 10:00 AM EST =

1/27/14; 9:36 AM EST = -30; signal line is +35

1/26/14; 7:00 PM EST = -14; signal line is +38

STOCK MARKET BEARISH -- SHORT

Keybot the Quant is short moving into the new week of trading. Utilities, commodities and semiconductors are dictating market direction currently. Watch UTIL 494.50 and 496.05. If the bulls can push UTIL back above 494.50, the market selling will cease. Ditto if GTX moves above 4780 so these two goals are the focus for the market bulls. The bears need to keep UTIL under 494.50 since this will dictate market mayhem moving forward. Bears will also try to move SOX under 522 since this will create another strong leg lower for the broad indexes.

For the SPX starting at 1790, the bulls need to retrace Friday's down move, a formidable task. Instead, the bulls will simply try to stop the bleeding by sending UTIL above 494.50 and/or GTX above 4780. The bears need to simply push the SPX any amount lower, a few pennies, and that will continue the downside selling several handles lower, likely to the 1781 support. Watch the overnight futures since any hint of negativity will create the acceleration lower. A move through 1791-1826 is sideways action. Keybot prints two pre-scheduled numbers this week one on Tuesday morning and one on Friday morning. The EOM is Friday. The bears are cruising with the algo number 52 points below the signal line.

2/2/14; 7:00 PM EST EOM =

1/31/14; 10:00 AM EST =

1/28/14; 10:00 AM EST =

1/26/14; 7:00 PM EST = -14; signal line is +38

1/24/14; 1:59 PM EST = -14; signal line is +39

STOCK MARKET BEARISH -- SHORT

Keybot the Quant is bearish through the weekend. Markets took the pipe today when financials failed early and then the utilities collapsed into the closing bell fueling the late-day blood-bath. Utilities, commodities and semiconductors are the top three parameters affecting markets going forward. The levels of interest can be identified when the Sunday pre-scheduled number prints. As long as UTIL stays under 494.50, now at 491.96, equities are in serious trouble. The bears are on easy street with the algo number now 53 points below the signal line.

1/26/14; 7:00 PM EST =

1/24/14; 1:59 PM EST = -14; signal line is +39

1/24/14; 9:36 AM EST = +2; signal line is +41

STOCK MARKET BEARISH -- SHORT

Keybot the Quant remains short. The bears are cruising. VIX is above 16. Copper is negative.  Financials, XLF, collapsed causing negativity. GTX is at 4770 only 10 points from 4780 but the bulls cannot yet muster up the energy to move higher. Bulls are keeping utilities elevated and this is what is preventing an outright market collapse. Bears need UTIL 496.05 and 494.50 and all Hades will break loose in markets. Bulls must keep UTIL above 496 through the closing bell so watch this closely.

Bulls need GTX 4780 or XLF 21.52 to place a firm halt on the downward market move. The caution flag is removed for now since the bears are traveling lower without resistance as evidenced by the algo number now 39 points below the signal line. The SPX sits at 1803 support. LOD is 1800.69 so the bulls stopped a failure of the psychological 1800 level by 69 pennies, so far.

1/26/14; 7:00 PM EST =

1/24/14; 9:36 AM EST = +2; signal line is +41

1/23/14; 10:45 AM EST = +18; signal line is +42

STOCK MARKET BEARISH -- SHORT -- CAUTION

Keybot the Quant is short moving into the Friday session to end the week. Utilities, financials, commodities and volatility are key. The UTIL 491.68 number for this week expires today and will be replaced with 496.05 through next Friday. Thus, watch UTIL 496.05 and 494.50 as critical bull-bear levels for the next six trading sessions. Note how the utilities closed a hair higher above these danger levels already knowing this requirement is in place for next week. The broad indexes will sell off if UTIL drops under the 496.05 and potentially collapse into free fall if UTIL 494.50 fails. Bears also need XLF under 21.53, only seven pennies lower, to unleash market mayhem and negativity.

The bulls are simply trying to stop the downside momo and can accomplish this if GTX is pushed above 4780 and/or VIX below 13.67. So bears need lower utilities and financials and the bulls need higher commodities and lower volatility. For the SPX starting at 1828, the bears need to push under 1820 to keep the downside party going. S&P futures are -13 at this writing. The bulls need to recover yesterday's losses and regain 1842 to get their mojo back which will be difficult considering the drop in copper. A move through 1821-1841 is sideways action today. The bears are driving the bus and if utilities or financials fail as described above the caution flag will be removed. Bears need UTIL under 496.05 and/or XLF under 21.53 to sustain the downside market momentum. Bulls need VIX under 13.67 and/or GTX above 4780. The interplay of these four parameters dictate market direction.

1/26/14; 7:00 PM EST =

1/23/14; 10:45 AM EST = +18; signal line is +42

STOCK MARKET BEARISH -- SHORT -- CAUTION

Keybot the Quant remains short. Copper collapses with JJC down to 40.17 now ushering in more sustainable market downside. UTIL is keeping its head above water on the bull side above 494.50. XLF is pennies from the 21.53 bull-bear line in the sand that will create another market down leg if it fails. Bulls cannot move GTX above 4780 so they cannot receive this spinach food they desperately need. VIX is above 14 causing negativity.

Bears need UTIL 494.50 and/or XLF 21.53 and the broad indexes will drop far more precipitously. Bulls need to push JJC back above 40.45 and/or GTX above 4780 to stop the market downside. The imminent turn status is removed since the algo number is now 24 points below the signal line. The caution flag may be removed depending on how the day finishes. XLF is at 21.60 and UTIL is 496.04; if either parameter fails the bull-bear levels shown above, markets will get very ugly; if both fail, equity markets may go into free fall. Interestingly, after all this market drama for a couple weeks, the SPX finally comes back down to the 1827 area where the aglo entered short for the current position.

1/26/14; 7:00 PM EST =

1/23/14; 10:45 AM EST = +18; signal line is +42

1/23/14; 9:38 AM EST = +34; signal line is +42

STOCK MARKET BEARISH -- SHORT -- CAUTION -- TURN MAY BE IMMINENT

Keybot the Quant remains short as the Thursday session is underway. The algo is tracking several parameters which can go either way and take the markets in that respective direction. Watch UTIL 494.50, XLF 21.53, JJC 40.45, VIX 13.67 and GTX 4780. Utes, financials and copper are all causing bullishness, barely, and volatility and commodities are causing bearishness, barely, respectively. All the parameters are dancing on their respective bull-bear lines listed. Whichever way these parameters move, so goes the markets. In other words, bears need weaker utilities, financials and copper while bulls need lower volatility and higher commodities. Pay attention to UTIL 494.50 over the coming minutes since it will push equities in the same direction that it pivots. The imminent turn notation remains since the markets are erratic and unstable.

1/26/14; 7:00 PM EST =

1/23/14; 9:38 AM EST = +34; signal line is +42

1/21/14; 9:38 AM EST = +48; signal line is +42 but algorithm remains short

STOCK MARKET BEARISH -- SHORT -- CAUTION -- TURN MAY BE IMMINENT

Keybot the Quant remains short as the market drama continues. Bulls and bears fight each day but neither side wants to take firm control. The algo did not print any numbers today. Keybot continues to want to go long but the program numbers will not yet latch in to place properly to allow the move. The bulls had it on a silver platter today only needing SPX 1849 and higher but could not gain the strength. For Thursday, if the SPX moves above 1847, and remains above, Keybot will likely flip long. The SPX begins at 1845 and the bears need to push under 1841 to accelerate the downside. A move through 1442-1846 is sideways action. Since this is such a tight range, a winner will likely be selected tomorrow, and this market decision may send markets in that respective direction for days and weeks ahead.

Watch UTIL 494.55, now above causing bullishness. Watch VIX 13.65, now below causing bullishness (volatility moves inverse to the markets). Watch JJC 40.46, now at 40.57 only 11 cents away, but above nonetheless, causing bullishness. Market bears need to see weak copper overnight tonight to cause JJC to fail tomorrow. Watch GTX 4780, now at 4758, only 22 points away, but below nonetheless, causing bearishness. Market bulls need to see strong commodities overnight and they will ride the GTX higher to glory.

Boiling things down more simply, bulls win with GTX above 4780 (stronger commodities) or SPX above 1847. Bears win with JJC under 40.46 (weaker copper) and must prevent SPX 1847 by all means necessary. Expect the unexpected. Markets are likely at a key inflection point and should break hard one way or the other before the weekend. Copper direction will tell a lot overnight.

1/26/14; 7:00 PM EST =

1/21/14; 9:38 AM EST = +48; signal line is +42 but algorithm remains short

STOCK MARKET BEARISH -- SHORT -- CAUTION -- TURN MAY BE IMMINENT

Keybot the Quant remains short as the market antics continue. Utilities explode higher which makes for happy bulls. UTIL is at 498.21 well above the 494.55 danger line so the bulls have a large feather in their caps. Copper gains strength as the day played out. The VIX moves higher but remains under the 13.65 level the bears need to create negativity. Keybot wants to go long right now, all day in fact, but is held back since the numbers cannot yet latch properly. If the SPX moves above 1849.31 in the Wednesday session, and remains above, Keybot will likely flip long. If a gap-up occurs, however, a timer will likely kick in that would prohibit the move to the long side for about 90 minutes.

The bears need to push either UTIL under 494.55, JJC under 40.50 and/or VIX above 13.65, to create market negativity and push equities lower. Considering that the bulls only need about five SPX points after the opening bell to flip the algo long, the market bears better come to play and push utes and copper lower, and volatility higher, otherwise, the bears will fold like a cheap suit and the bulls will create new all-time highs for the SPX.

For the SPX starting at 1844, the bulls need to push above 1849 and an upside acceleration will occur, driving up through the all-time high at 1851 like a hot knife through butter and moving well into the mid and upper 1850's. The bears need to push under 1832 to accelerate the downside. A move through 1833-1848 is sideways action. The bears continue to drive the bus but the bulls have their hands on the steering wheel as well and the vehicle is careening out of control down the boulevard. Wednesday is a big day. Either the bulls print SPX 1849 and higher to lock in a few upside days ahead and new all-time highs, and Keybot to flip long, or, the bears come to play and attain at least one of the three ute, copper and/or volatility numbers listed above to initiate the beginning of a strong move lower for equities. Which side will eat their Wheaties?

1/26/14; 7:00 PM EST =

1/21/14; 9:38 AM EST = +48; signal line is +42 but algorithm remains short

1/19/14; 7:00 PM EST = +32; signal line is +42

STOCK MARKET BEARISH -- SHORT -- CAUTION -- TURN MAY BE IMMINENT

Keybot the Quant remains short through the holiday weekend. Markets reopen for trading on Tuesday morning. The algo says the bears are driving the bus but the broad markets remain elevated refusing to yield. Utilities, copper and volatility will tell the tale to begin the week. Watch UTIL 491.68 and 494.12. Bulls win above 494.12. Bears win below 491.68. In between, like now with price starting the week at 492.70, and markets are unable to choose a winner. UTIL will choose a side and this will send the broad indexes in the same respective direction. In addition, the bears can receive downside juice with either JJC under 40.42 and/or VIX above 13.83. Bulls can return to easy street with UTIL 494.12.

For the SPX starting at 1839, the bulls need to push above 1846 and the upside will accelerate to test the all-time high at 1851 in a heartbeat. The bears need to push under 1835 to accelerate the downside. A move through 1836-1845 is sideways action. If UTIL moves above 494.12, and the SPX moves above 1846, and both remain above, Keybot will likely flip long. The bears will accelerate the downside with UTIL 491.68, JJC 40.42 and/or VIX 13.83. Keybot does not print any pre-scheduled numbers this week.

1/26/14; 7:00 PM EST =

1/19/14; 7:00 PM EST = +32; signal line is +42

1/17/14; 10:00 AM EST = +32; signal line is +42

STOCK MARKET BEARISH -- SHORT -- CAUTION -- TURN MAY BE IMMINENT

Keybot the Quant remains short through the 3-day holiday weekend. The status is quo. UTIL could not punch down through 491.68 to help the bears, and could not pierce up through 494.12 to help the bulls, ending the day at 492.70, dead flat, something that does not happen often. The last three days are interesting since the bulls have markets on a silver platter but cannot take advantage. Utilities, copper and volatility will remain important for next week. The areas and levels of interest can be identified once the Sunday pre-scheduled number prints. Markets are closed on Monday in Observance of the Dr Martin Luther King Day holiday. 

1/19/14; 7:00 PM EST =

1/17/14; 10:00 AM EST = +32; signal line is +42

1/17/14; 9:00 AM EST = +33; signal line is +43

1/13/14; 2:28 PM EST = +33; signal line is +44; go short 1827; (Benchmark SPX for 2014 = -1.1%)(Keybot this trade = -0.5%; Keybot for 2014 = -0.7%)(Actual this trade = -1.1%; Actual for 2014 = -1.7%)

STOCK MARKET BEARISH -- SHORT -- CAUTION -- TURN MAY BE IMMINENT

Keybot the Quant remains short. Equities oscillate higher, and lower, but the parameters currently driving the market are remaining in their respective camps with neither side willing to give up. Retail has likely suffered structural damage this week. Watch utilities. For next week the key numbers are UTIL 491.68 and 494.12. UTIL is 492.70 creating market strength by being above 491.68 but at the same time creating bearishness below 494.12. Pay attention to where UTIL closes the week since this will have a great impact on the broad indexes when they reopen on Tuesday morning. The bears need either JJC 40.42 and/or VIX 13.87 to create market negativity. If UTIL moves above 494.12, and the SPX moves above 1848, and both remain above, Keybot will likely flip to the long side.

For the SPX starting at 1846, the bulls only need two points, to punch up through 1848 and price will move well into the 1850's. The bears need to push below 1840 to accelerate the downside. A move through 1841-1847 is sideways action. The algo has not printed any numbers since flipping short on Monday but will print two pre-scheduled numbers tomorrow morning. Watch UTIL closely at the opening bell. A strong drop in copper overnight would provide the all-clear signal for bears. Higher copper and higher utilities will make for happy bulls into the 3-day holiday weekend.

1/19/14; 7:00 PM EST =

1/17/14; 10:00 AM EST =

1/17/14; 9:00 AM EST =

1/13/14; 2:28 PM EST = +33; signal line is +44; go short 1827; (Benchmark SPX for 2014 = -1.1%)(Keybot this trade = -0.5%; Keybot for 2014 = -0.7%)(Actual this trade = -1.1%; Actual for 2014 = -1.7%)

STOCK MARKET BEARISH -- SHORT -- CAUTION -- TURN MAY BE IMMINENT

Keybot the Quant remains short despite another strong market up day. The algo has not printed any numbers since flipping short on Monday afternoon. The Dow is up triple digits but the VIX is stone-cold flat at 12.28. Financials and chips sent markets higher. Note how the retail sector did not gain traction today. Watch RTH 60.03, UTIL 494.10, JJC 40.42 and VIX 13.87. Bulls need retail and/or utilities to cooperate to verify the market upside. Bears need lower copper and higher volatility to get their mojo back. If RTH moves above 60.03, or UTIL above 494.10, and the SPX above 1851, and the two parameters remain elevated, Keybot will likely flip long.

For the SPX starting at 1848.38 in the Thursday session, a new all-time closing high by two pennies, the bulls need to touch the 1851 handle and the good times will keep rolling along with the wine flowing like water to the upside. The bears need to push under 1841 to accelerate the downside. A move through 1842-1850 is sideways action. The imminent turn notation remains in play; watch RTH 60.03 closely.   

1/17/14; 9:00 AM EST =

1/13/14; 2:28 PM EST = +33; signal line is +44; go short 1827; (Benchmark SPX for 2014 = -1.1%)(Keybot this trade = -0.5%; Keybot for 2014 = -0.7%)(Actual this trade = -1.1%; Actual for 2014 = -1.7%)

STOCK MARKET BEARISH -- SHORT -- CAUTION -- TURN MAY BE IMMINENT

Keybot the Quant remains short after the snap-back Tuesday action occurs. It is always a formidable task for markets to retrace large moves, up or down, and today equities retrace the large Monday down day. The algo did not print any numbers today. Note, however, that retail and utes remain bearish, and copper and volatility bullish. No change. The expectation would be flat markets. The same parameters are key, in order of importance; RTH 60.04, UTIL 494.12, JJC 40.40 and VIX 13.87. RTH and UTIL are causing negativity and JJC and VIX are causing positivity. Whichever parameter flips sides will dictate the direction of the broad indexes. RTH starts at 59.98 only 6 pennies from the bull-bear line sitting on the bear side. If RTH moves above 60.04, and the SPX moves above 1839, and both remain above, Keybot will likely flip to the long side.

For the SPX starting at 1839, closing near the highs, the bulls only need to see a smidge of green in the S&P futures overnight and the bulls will be expanding the upside rally with the SPX on the way to test the all-time highs at 1848-1850. The bears need to push under 1821 to accelerate the downside, a formidable task but not at all impossible. A move through 1822-1839 is sideways action. Markets remain very unstable and erratic; the action the last two days obviously illustrates the point. RTH 60.04 is very important and also keep an eye on copper. Interestingly, next week the UTIL important lower limit bull-bear line in the sand will be 491.68 far above the 480.00 number for this week (this is a very attractive set up for bears). The bulls will need to start building insurance in utilities for next week so look for strength to end this week. If utes remain flat to weaker moving into the weekend, that will be a sign of trouble ahead for markets next week, a holiday-shortened week. The imminent turn status is in play since bullish RTH and SPX action will likely flip the algo back to the long side.

1/17/14; 9:00 AM EST =

1/13/14; 2:28 PM EST = +33; signal line is +44; go short 1827; (Benchmark SPX for 2014 = -1.1%)(Keybot this trade = -0.5%; Keybot for 2014 = -0.7%)(Actual this trade = -1.1%; Actual for 2014 = -1.7%)

STOCK MARKET BEARISH -- SHORT -- CAUTION

Keybot the Quant begins the Tuesday session on the bear side after the wild down day yesterday. The bulls will try to retrace the 23-point drop in the SPX, a formidable task, but instead will be happy to simply send the RTH above 60.03 and/or UTIL above 494.12. Either of these two will stop the market down slide. If retail and utilities remain bearish, respectively, and the bears either send JJC under 40.40 and/or the VIX above 13.90, the market downside will receive further fuel and equities will take another strong leg lower.

For the SPX starting at 1819, the bulls will simply focus on sending utilities and retail higher to stop the market selling. The bears need to push under 1816, only about 3 points lower, to accelerate the downside to 1808 and 1803 support. A move through 1817-1842 is sideways action today. S&P futures are +3. Markets remain erratic and unstable. Watch the RTH 60.03 level at the opening bell for an immediate read on the markets.

1/19/14; 7:00 PM EST =

1/17/14; 10:00 AM EST =

1/17/14; 9:00 AM EST =

1/13/14; 2:28 PM EST = +33; signal line is +44; go short 1827; (Benchmark SPX for 2014 = -1.1%)(Keybot this trade = -0.5%; Keybot for 2014 = -0.7%)(Actual this trade = -1.1%; Actual for 2014 = -1.7%)

STOCK MARKET BEARISH -- SHORT -- CAUTION

Keybot the Quant turns bearish due to the collapse in the retail sector today at SPX 1827. Pay attention to RTH 60.04. Price is under causing market negativity along with UTIL under 494.12. Keybot is off to a rocky start in 2014, but so are the broad markets. The algo cycled out of SSO and into SDS. SPX likely will need a back kiss at 1827 today or tomorrow. Use utilities and retail as your guide forward. As always, stay alert for a potential whipsaw today or tomorrow. Bears will receive strong downside fuel if copper moves lower. Bulls can immediately stop the market slide with UTIL 494.12 or RTH 60.04.

1/17/14; 9:00 AM EST =

1/13/14; 2:28 PM EST = +33; signal line is +44; go short 1827; (Benchmark SPX for 2014 = -1.1%)(Keybot this trade = -0.5%; Keybot for 2014 = -0.7%)(Actual this trade = -1.1%; Actual for 2014 = -1.7%)

1/13/14; 2:08 PM EST = +33; signal line is +45 but algorithm remains long

1/13/14; 1:31 PM EST = +49; signal line is +46

1/13/14; 1:22 PM EST = +33; signal line is +46 but algorithm remains long

1/13/14; 9:30 AM EST = +49; signal line is +47

1/12/14; 7:00 PM EST = +65; signal line is +48

1/10/14; 3:59 PM EST = +65; signal line is +47

1/10/14; 12:50 PM EST = +49; signal line is +47

1/10/14; 12:15 AM EST = +65; signal line is +47

1/10/14; 11:02 AM EST = +49; signal line is +46

1/10/14; 9:34 AM EST = +65; signal line is +46

1/10/14; 9:30 AM EST = +49; signal line is +45

1/10/14; 9:00 AM EST = +33; signal line is +45 but algorithm remains long

1/9/14; 10:38 AM EST = +33; signal line is +45 but algorithm remains long

1/7/14; 10:00 AM EST = +49; signal line is +45; go long 1837; (Benchmark SPX for 2014 = -0.6%)(Keybot this trade = +0.2%; Keybot for 2014 = -0.2%)(Actual this trade = +0.3%; Actual for 2014 = -0.6%)

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

Keybot the Quant remains long as the market drama picks up quickly for the new week of trading. UTIL falls under the 494.12 bull-bear line in the sand so this helps the bears create market negativity. JJC is 40.51 remaining above the 40.34 bull-bear line in the sand so this limits the downside. Ditto volatility with the VIX falling under 12 to print an 11 handle today. Flat or lower volatility will easily allow the bulls to keep markets elevated. Bulls will receive upside juice if they push UTIL above 494.12. Bears will receive downside juice with JJC 40.34, and if this occurs, along with the SPX losing 1832.50, and both staying below, Keybot will likely flip short. Hence, the imminent turn status is added again. Markets are erratic, unstable and a coin-flip as evidenced by the algo number only 2 ticks from the signal line. For now the bulls maintain control.

1/17/14; 9:00 AM EST =

1/13/14; 9:30 AM EST = +49; signal line is +47

1/12/14; 7:00 PM EST = +65; signal line is +48

STOCK MARKET BULLISH -- LONG -- CAUTION

Keybot the Quant is long moving into the new week of trading. The bulls came to play on Friday driving copper higher and in the last couple minutes of trading pushing UTIL above the 493.72 bull-bear line. The bulls are cruising. Bears need UTIL under 493.72 and/or copper, JJC, under 40.33, to stop the market upside. If not, the bulls will push the SPX up to new all-time highs.

For the SPX starting at 1842, the bulls need less than one point higher, to push up through 1843 and the move to new all-time highs will occur quickly. Therefore, any green in the overnight futures will set this path in motion. The bears need to push under 1833 to accelerate the downside. A move through 1834-1842 is sideways action. The caution flag remains out but the bulls are in firm control. The bears need weaker utilities and copper. Keybot prints two pre-scheduled numbers this week both on Friday morning. 

1/19/14; 7:00 PM EST =

1/17/14; 10:00 AM EST =

1/17/14; 9:00 AM EST =

1/12/14; 7:00 PM EST = +65; signal line is +48

1/10/14; 3:59 PM EST = +65; signal line is +47

1/10/14; 12:50 PM EST = +49; signal line is +47

1/10/14; 12:15 AM EST = +65; signal line is +47

1/10/14; 11:02 AM EST = +49; signal line is +46

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

Keybot the Quant remains long. The algo prints the pre-scheduled number this morning followed by three more print outs thus far in the session. Bulls remain in control. JJC is above 40.29 and UTIL popped above 493.65 creating the bull fuel. UTIL has since fallen back under 493.65. The strong copper helps maintain the elevation in the stock markets. Bears need JJC 40.29. Bulls need UTIL 493.65. If status quo remains, equities will float sideways to sideways higher into the closing bell.

If JJC drops under 40.29, and the SPX loses 1830.50, and both remain under, Keybot will likely flip short. Otherwise, the bulls will maintain control into and through the weekend. The lower volatility today helps the bulls maintain an elevated stock market. Since both the SPX and VIX are down, one of them is wrong. The imminent turn notation remains in the title line but bears got nothing without weaker copper. Markets remain very unstable.

1/12/14; 7:00 PM EST =

1/10/14; 11:02 AM EST = +49; signal line is +46

1/10/14; 9:34 AM EST = +65; signal line is +46

1/10/14; 9:30 AM EST = +49; signal line is +45

1/10/14; 9:00 AM EST = +33; signal line is +45 but algorithm remains long

1/9/14; 10:38 AM EST = +33; signal line is +45 but algorithm remains long

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

Keybot the Qaunt remains bullish moving into the Friday session but the algo wants to go short. If the SPX drops under 1830.50, and remains under, Keybot will likely flip short. The bulls need to push JJC back above 40.29 or send UTIL above 493.65 to gain upside market fuel. Bears need to push UTIL under 482.19 or VIX above 14.09 to gain downside market fuel. If the parameters remain as is, markets will float sideways to sideways higher. JJC is very near 40.29 so watch copper in overnight trading. The direction in copper will likely send the broad indexes in that same direction. UTIL 480.00 will become an important level for next week replacing 482.19 so pay attention to this area at the closing bell.

For the SPX starting at 1838, the bulls need to push up through 1843 to accelerate the upside. The bears need to push under 1830.50 to accelerate the downside. A move through 1831-1842 is sideways action. The market bears have it in their hands if they want it. Markets remain a toss-up. Keybot prints a pre-scheduled number before the opening bell tomorrow.

1/12/14; 7:00 PM EST =

1/10/14; 9:00 AM EST =

1/9/14; 10:38 AM EST = +33; signal line is +45 but algorithm remains long

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

Keybot the Quant remains long but wants to flip short. Copper broke down this morning with JJC now at 40.18 under the 40.29 line in the sand. The algo's internal programming functions are not yet full latched across the board to permit a move to the short side. To keep it simple, if the SPX drops under 1830.50, and remains under, Keybot will likely flip short. The SPX is at 1834.02 as this message is typed during lunch time. Bulls need to move the JJC above 40.29 as soon as possible.

1/10/14; 9:00 AM EST = 
1/9/14; 10:38 AM EST = +33; signal line is +45 but algorithm remains long

1/7/14; 10:00 AM EST = +49; signal line is +45; go long 1837; (Benchmark SPX for 2014 = -0.6%)(Keybot this trade = +0.2%; Keybot for 2014 = -0.2%)(Actual this trade = +0.3%; Actual for 2014 = -0.6%)

STOCK MARKET BULLISH -- LONG -- CAUTION

Keybot the Quant is long moving into the Thursday session and has not printed any numbers since Tuesday when the flip to the long side occurred. Bulls need to push UTIL above 493.57 to gain more upside market fuel. Bears need to push UTIL under 482.19, RTH under 59.91, JJC under 40.35 and/or VIX above 14.09 to stop the market upside and gain fuel to the downside (any one parameter would do). If all these parameters remain status quo, markets will float sideways with an upward bias. Copper is weak in early trading down about -0.8% which would place JJC only about one dime away from the bull-bear danger line. If the bears can flip one of the parameters above into their camp, and push the SPX under 1831, Keybot will likely flip short.

For the SPX starting at 1837, the bulls need to push above 1840 to accelerate the upside to test and print new all-time highs. S&P futures are +6 about 3 hours before the opening bell forecasting this move. The bears need to push under 1831 to accelerate the downside. A move through 1832-1839 is sideways action.

1/10/14; 9:00 AM EST =

1/7/14; 10:00 AM EST = +49; signal line is +45; go long 1837; (Benchmark SPX for 2014 = -0.6%)(Keybot this trade = +0.2%; Keybot for 2014 = -0.2%)(Actual this trade = +0.3%; Actual for 2014 = -0.6%)

STOCK MARKET BULLISH -- LONG -- CAUTION

Keybot the Quant is long. The bulls pumped utilities and retail and pushed volatility lower to create the upside energy. Interestingly, note how the RTH came down towards the bull-bear line in the sand and bounced today. Markets remain very much a toss-up. Watch UTIL 482.19 (now causing bullishness), 493.50 (now causing bearishness), RTH 59.91 (now causing bullishness) and VIX 14.09 (now causing bullishness). If these 4 parameters remain status quo, markets move sideways with an upward bias. Bears need to turn at least 1 of the 3 bullish parameters bearish to stop the market upside. If 1 of the 3 bullish parameters turn bearish, and the SPX drops under 1829, Keybot will likely flip back to the short side.

For the SPX starting at 1838 for Wednesday, the bulls only need 2 points higher, to punch up through 1840 to accelerate higher to test the all-time highs at 1850-ish. Therefore, watch the overnight S&P futures to see if the bulls can muster up a couple of points, or not. The bears need to push under 1829 to accelerate the downside. A move through 1830-1839 is sideways action. Markets are very erratic and unstable. Stay cautious and alert.

1/10/14; 9:00 AM EST =

1/7/14; 10:00 AM EST = +49; signal line is +45; go long 1837; (Benchmark SPX for 2014 = -0.6%)(Keybot this trade = +0.2%; Keybot for 2014 = -0.2%)(Actual this trade = +0.3%; Actual for 2014 = -0.6%)

STOCK MARKET BULLISH -- LONG -- CAUTION

Keybot the quant flips to the long side this morning at 1837. UTIL jumps higher, VIX collapses lower, and RTH moves higher, all bull-friendly moves. The price action is freakish today with a very jumpy tape. The bulls are now driving the bus but as always, stay alert for a whipsaw today or tomorrow. The last trade results in a slight gain. Keybot exits SDS and enters SSO. The SPX Benchmark remains negative on the year. Watch UTIL 482.19 (causing bullishness) and 493.50 (causing bearishness), and VIX 14.11 (causing bullishness). Remain very cautious as the market action is very erratic and unstable. The SPX is currently printing 1837.

1/10/14; 9:00 AM EST =

1/7/14; 10:00 AM EST = +49; signal line is +45; go long 1837; (Benchmark SPX for 2014 = -0.6%)(Keybot this trade = +0.2%; Keybot for 2014 = -0.2%)(Actual this trade = +0.3%; Actual for 2014 = -0.6%)

1/6/14; 1:59 PM EST = +49; signal line is +44 but algorithm remains short

1/6/14; 10:51 AM EST = +33; signal line is +43

1/6/14; 10:18 AM EST = +49; signal line is +43 but algorithm remains short

1/5/14; 7:00 PM EST = +33; signal line is +41

1/3/14; 12:23 PM EST = +33; signal line is +41

1/3/14; 11:51 AM EST = +19; signal line is +41

1/3/14; 9:36 AM EST = +33; signal line is +41

1/3/14; 9:35 AM EST = +19; signal line is +41

1/2/14; 11:40 AM EST = +35; signal line is +41

1/2/14; 10:58 AM EST = +49; signal line is +41 but algorithm remains short

1/2/14; 9:36 AM EST = +35; signal line is +41; go short 1841; (Benchmark SPX for 2014 = -0.4%)(Keybot this trade = -0.4%; Keybot for 2014 = -0.4%)(Actual this trade = -0.9%; Actual for 2014 = -0.9%)

STOCK MARKET BEARISH -- SHORT -- CAUTION

Keybot the Quant remains short moving into the Tuesday session. Keybot wants to go long but is held back by internal programming rules not yet satisfied to permit the move. To keep things simple, if the SPX moves above 1837, and stays above, Keybot will likely flip long. The bears could not gain downside traction since the bulls are stepping on the neck of volatility keeping the VIX under 14.11. UTIL moved above 482.19 closing the trap-door. Bears could not take advantage of the weak utes but price is only 11 cents on the bull side and the bears could easily push UTIL under 482.19 again. The stealth negative move yesterday was in retail. The algo is now tracking RTH 59.89 as a priority and price is at 59.98, only 9 pennies above this critical bull-bear line in the sand. Thus, equities will float sideways to sideways higher if bulls maintain UTIL above 482.19, VIX below 14.11 and RTH above 59.89. Bears will growl if any 1 of these 3 stooges turn bearish and markets become more bearish if 2, or all 3, parameters turn bearish.

For the SPX starting at 1827, the bulls need to push up through 1837 to accelerate the upside back to the all-time highs at 1850-ish. The bears need to push under 1824 to accelerate the downside. A move through 1825-1836 is sideways action. S&P futures are +7 about 2 hours before the opening bell. The bears are driving the bus, for now.

1/10/14; 9:00 AM EST =

1/6/14; 1:59 PM EST = +49; signal line is +44 but algorithm remains short

1/6/14; 10:51 AM EST = +33; signal line is +43

Note Added 6:57 PM on 1/7/14: Looking back, forgot to attach the imminent turn status note in the title line but that was obvious since the SPX only needed to move above 1837 to flip long, which it did today at 10 AM.

STOCK MARKET BEARISH -- SHORT -- CAUTION

Keybot the Quant remains short as the new week of trading is underway. The algo prints two numbers to begin the week. UTIL remains weak and wants to send markets lower, however, the bulls keep their thumbs on volatility, not allowing the VIX to move above 14.12. The downside trouble will be confirmed with VIX 14.12, otherwise, the bulls can stage a come back. The algo is now tracking RTH 59.90 as a bull-bear line in the sand in addition to utes, volatility and copper. Bears need higher volatility. Bulls need higher utilities.

1/10/14; 9:00 AM EST =

1/6/14; 10:51 AM EST = +33; signal line is +43

1/6/14; 10:18 AM EST = +49; signal line is +43 but algorithm remains short

1/5/14; 7:00 PM EST = +33; signal line is +41

STOCK MARKET BEARISH -- SHORT -- CAUTION

Keybot the Quant is short to begin the first full week of trading in 2014. As mentioned previously, utilities, volatility and copper dictate market direction currently; watch UTIL 482.19 (now causing bearishness at 481.40), VIX 14.12 (now causing bullishness at 13.76) and JJC 40.25 (now causing bullishness at 40.91), respectively. The UTIL 480-482 level is the trap-door level. Technically, to begin the week, with UTIL under 482.19, the trap-door is open and significant market downside is expected. The bulls crushed volatility on Friday which stopped the market downside. If VIX pops above 14.12 and moves towards 15 and above, at a minimum staying above 14.12 here on out, and UTIL loses 480-482, markets will be dropping like a stone. Bulls will recover using the new money for the new year to stage a come back move if UTIL moves above 482.19 on Monday.

For the SPX starting at 1831, the bulls need to push above 1838 to accelerate the upside towards 1850 again. The bears need to push under 1829 to accelerate the downside. A move through 1830-1837 is sideways action. Keybot prints one pre-scheduled number this week on Friday morning. The bears are driving the bus and need VIX above 14.12 and/or JJC under 40.25 to receive more downside fuel. The bulls need UTIL above 482.19 as soon as possible to prevent the market downside from gaining momo. Markets remain erratic and unstable. If the bulls push UTIL above 482.19, and the SPX above 1838, and these levels hold, Keybot will likely flip long.

1/12/14; 7:00 PM EST =

1/10/14; 9:00 AM EST =

1/5/14; 7:00 PM EST = +33; signal line is +41

1/3/14; 12:23 PM EST = +33; signal line is +41

STOCK MARKET BEARISH -- SHORT -- CAUTION

Keybot the Quant remains short through the first weekend of the new year. Volatility could not make up its mind today with the VIX moving above and below 14.12 sending the markets in the opposite direction each time. UTIL closes at 481.40. This is extremely significant. UTIL's trap-door for equities is open. If the VIX would have stayed above 14.12, the broad indexes would have finished far lower on Friday. UTIL 482.19 is critical next week. Bears will be fine moving forward with weak utilities. UTIL 480.00 will replace 482.19 as the key level for the week of 1/13/14. Thus, pay close attention to UTIL 480.00-482.19 for the next couple weeks. If this zone fails, markets will be in serious trouble. If UTIL recovers and moves higher, up and away from 482, the bulls will be pushing markets higher and the bears will fold like a cheap suit.

The algo has raised the priority on copper so utilities, volatility and copper will dictate market direction come Monday. Note the collapse in commodities, GTX. Next week's areas and levels of interest can be identified once the Sunday pre-scheduled number prints tomorrow.

1/5/14; 7:00 PM EST =

1/3/14; 12:23 PM EST = +33; signal line is +41

1/3/14; 11:51 AM EST = +19; signal line is +41

1/3/14; 9:36 AM EST = +33; signal line is +41

STOCK MARKET BEARISH -- SHORT -- CAUTION

Keybot the Quant remains short as the Friday session is underway. UTIL falls through the 482.19 level paving the way for far weaker markets, however, the bulls are jamming volatility lower to try and save the day. VIX is 13.94, under the 14.12 bull-bear line in the sand, so this helps the bulls prevent a strong slide south, for now. If VIX moves above 14.12, it will not be surprising to see the SPX print another down day like yesterday. Bulls need to move UTIL above 482.19 to float equities sideways to sideways higher into the weekend. Use VIX 14.12 (now causing bullishness) and UTIL 482.19 (now causing bearishness) as the gauge for market direction today.

1/5/14; 7:00 PM EST =

1/3/14; 9:36 AM EST = +33; signal line is +41

1/3/14; 9:35 AM EST = +19; signal line is +41

1/2/14; 11:40 AM EST = +35; signal line is +41

STOCK MARKET BEARISH -- SHORT -- CAUTION

Keybot the Quant is short to begin the new year. Utilities and volatility will dictate market direction today. The bears came within 13 pennies of opening the UTIL 482.19 trap-door for markets but the bulls saved the day again, just like in 2013. Watch UTIL 482.19 and VIX 14.12. Very simply, if VIX drops under 14.12, the bulls will stage a recovery rally today and into the weekend. If VIX stays above 14.12, and UTIL 482.19 fails, the trap-door opens and a drop of 20 to 30 handles in the SPX in quick order would not at all be surprising. Market mayhem is expected if UTIL 482.19 fails.

For the SPX starting at 1832, the bulls need to touch the 1846 handle and the upside party will begin again. The bears need to push under 1828 to accelerate the downside. A move through 1829-1845 is sideways action. S&P futures are +3 at this writing about an hour or so in front of the opening bell. This hints at a sidways stutter to start the day. The bears are driving the bus. If the bulls can keep utes elevated, push VIX under 14.12, and push the SPX above 1846, Keybot would likely flip long.

1/5/14; 7:00 PM EST =

1/2/14; 11:40 AM EST = +35; signal line is +41

1/2/14; 10:58 AM EST = +49; signal line is +41 but algorithm remains short

STOCK MARKET BEARISH -- SHORT -- CAUTION

Keybot the Quant remains short as the algo prints a couple more numbers. VIX dropped under 14.12 showing the bulls were fighting back but VIX quickly moved back above 14.12, now at 14.29, so the bulls folded like a cheap suit. Equities remain weak to begin the year. Look at utilities. UTIL is collapsing now near the lows at 483.69. If UTIL 482.19 and lower occurs, this will open a trap-door in the markets and a whoosh of 20 or 30 SPX handles free-fall would be anticipated in relatively quick order. Bulls are obviously fighting with all they got to prevent UTIL from dropping anymore.

1/5/14; 7:00 PM EST =

1/2/14; 11:40 AM EST = +35; signal line is +41

1/2/14; 10:58 AM EST = +49; signal line is +41 but algorithm remains short

1/2/14; 9:36 AM EST = +35; signal line is +41; go short 1841; (Benchmark SPX for 2014 = -0.4%)(Keybot this trade = -0.4%; Keybot for 2014 = -0.4%)(Actual this trade = -0.9%; Actual for 2014 = -0.9%)

STOCK MARKET BEARISH -- SHORT -- CAUTION

Keybot the Quant flips to the short side at SPX 1841 to begin the new year. The market shenanigans begin quickly in 2014 only 6 minutes into the trading year! VIX pops above 14.11 and GTX collapses under 4820 so the higher volatility and lower commodities are creating the broad market weakness. As always, stay alert for a whipsaw back to the long side either today or tomorrow. If VIX stays above 14.11 and GTX below 4820, equities will remain weak moving forward. The VIX is running out of gas now drifting down to 14.31 currently.

1/5/14; 7:00 PM EST =

1/2/14; 9:36 AM EST = +35; signal line is +41; go short 1841; (Benchmark SPX for 2014 = -0.4%)(Keybot this trade = -0.4%; Keybot for 2014 = -0.4%)(Actual this trade = -0.9%; Actual for 2014 = -0.9%)

1/1/14; Begin 2014 Data Set = +63; signal line is +41; go long 1848; (Benchmark SPX for 2014  = 0%)(Keybot this trade = 0%; Keybot for 2014 = 0%)(Actual this trade = 0%; Actual for 2014 = 0%)

STOCK MARKET BULLISH -- LONG -- CAUTION

Keybot the Quant is long to begin the new year of trading. The market bulls need UTIL above 493.50 to signal further upside party time. Market bears need to push UTIL under 482.19, a trap-door for equities, to create downside. UTIL begins at 490.57. Bears can create market negativity with GTX under 4820 and/or VIX above 14.15. Both levels were teased on Tuesday, hence the caution flag has returned. The algo number is 22 points above the signal line so bulls are comfortable but this may change quickly. If the VIX moves above 14.15, and GTX under 4820, and the SPX loses 1842.50, and stays under, Keybot will likely flip short.

For the SPX starting at another new all-time closing high at 1848, the bulls need to punch up through 1849.50, and the upside orgy will continue with price moving well into the 1850's. The bears need to push under 1842.50 to accelerate the downside. A move through 1843-1848 is sideways action. Low volume trading is expected. S&P futures are -3 at this writing about 2 hours before the opening bell, which would favor the sideways zone. Pay attention to utilities, volatility and commodities. If either VIX or GTX turns bearish, consider the algo to be in imminent turn status.

1/5/14; 7:00 PM EST =

1/1/14; Begin 2014 Data Set = +63; signal line is +41; go long 1848; (Benchmark SPX for 2014  = 0%)(Keybot this trade = 0%; Keybot for 2014 = 0%)(Actual this trade = 0%; Actual for 2014 = 0%)

STOCK MARKET BULLISH -- LONG -- END OF YEAR RESULTS

Keybot the Quant remains long through the year end into the new 2014 year. The program is zeroed as always to begin the new year tomorrow morning. The SPX Benchmark Index is up a huge +26.9% in 2013, the biggest yearly gain in 16 years. The Keybot the Quant algorithm program gained +17.8%. Keybot the Quant actual trading (the bottom line) gained +12.4% in 2014; a respectable gain but only half of the Benchmark. Keybot remains in SSO. The entries and exits for trades in 2013 are provided below. The slate is clean to begin the year. The bulls are running. Watch VIX 14.15 and GTX 4820 to see if the bears can develop juice. Bulls need UTIL above 493.50 to continue the upside party.

1/12/14; 7:00 PM EST =

1/10/14; 9:00 AM EST =

1/5/14; 7:00 PM EST =

1/1/14; Begin 2014 Data Set = +63; signal line is +41; go long 1848; (Benchmark SPX for 2014  = 0%)(Keybot this trade = 0%; Keybot for 2014 = 0%)(Actual this trade = 0%; Actual for 2014 = 0%)

Keybot the Quant Begins 2014 on the Long Side from SPX 1848. All Data 0%. Begin 2014.

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START 2014 PROGRAM

Begin Printing

Mark and Set

Date Stamp 1/1/14; 9:14 AM EST

START 2014 PROGRAM

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END OF 2013 RESULTS:

SPX Benchmark Final 2013:  +26.9% Return (SPX Started at 1426 and Ended at 1848)

Keybot the Quant Actual Trading +12.4% Return Did Not Beat the SPX Benchmark

Keybot the Quant is a long-short algorithm that oscillates between a bullish position and a bearish position only.

Number of Position Changes (Long to Short or Short to Long) During 2011:  27

Number of Broker Commissions Required During 2012:  54

Benchmark SPX During 2013:  +29.6% Return

Keybot the Quant Algorithm (the Computer Program Only) During 2013: +17.8% Return

Keybot the Quant Actual Trading (Actual Trading with the Quant Using ETF’s) During 2013:  +12.4% Return

12/31/2012	1426	Go Long	4:00 PM	DIA	130.57
2/21/2013	1498	Sell Long	2:08 PM	DIA	138.12
2/21/2013	1498	Go Short	2:08 PM	SDS	48.57
2/25/2013	1522	Cover short	9:30 AM	SDS	46.93
2/25/2013	1522	Go Long	9:30 AM	SPY	152.58
2/25/2013	1502	Sell Long	3:21 PM	SPY	150.35
2/25/2013	1502	Go Short	3:21 PM	SH	32.12
3/4/2013	1520	Cover short	2:25 PM	SH	31.69
3/4/2013	1520	Go Long	2:25 PM	DIA	140.69
3/19/2013	1540	Sell Long	1:23 PM	DIA	143.60
3/19/2013	1540	Go Short	1:23 PM	DOG	31.05
3/20/2013	1557	Cover short	11:15 AM	DOG	30.80
3/20/2013	1557	Go Long	11:15 AM	DIA	144.91
4/3/2013	1562	Sell Long	11:02 AM	DIA	145.77
4/3/2013	1562	Go Short	11:02 AM	SH	30.78
4/9/2013	1568	Cover short	12:32 PM	SH	30.63
4/9/2013	1568	Go Long	12:32 PM	DIA	146.43
4/15/2013	1566	Sell Long	12:58 PM	DIA	146.78
4/15/2013	1566	Go Short	12:58 PM	RWM	22.23
4/23/2013	1569	Cover short	9:30 AM	RWM	22.05
4/23/2013	1569	Go Long	9:30 AM	DIA	146.10
5/22/2013	1661	Sell Long	2:12 PM	DIA	153.34
5/22/2013	1661	Go Short	2:12 PM	SDS	38.66
6/7/2013	1633	Cover short	10:02 AM	SDS	39.81
6/7/2013	1633	Go Long	10:02 AM	SSO	79.56
6/12/2013	1622	Sell Long	11:51 AM	SSO	78.44
6/12/2013	1622	Go Short	11:51 AM	SDS	40.32
6/17/2013	1638	Cover short	9:30 AM	SDS	39.50
6/17/2013	1638	Go Long	9:30 AM	SPY	164.29
6/20/2013	1625	Sell Long	9:30 AM	SPY	161.94
6/20/2013	1625	Go Short	9:30 AM	SH	29.49
6/26/2013	1601	Cover short	9:31 AM	SH	29.65
6/26/2013	1601	Go Long	9:31 AM	DIA	148.53
8/7/2013	1691	Sell Long	9:35 AM	DIA	154.39
8/7/2013	1691	Go Short	9:35 AM	SDS	36.66
8/13/2013	1694	Cover short	12:50 PM	SDS	36.45
8/13/2013	1694	Go Long	12:50 PM	SSO	85.59
8/15/2013	1669	Sell Long	9:43 AM	SSO	83.19
8/15/2013	1669	Go Short	9:43 AM	SH	28.34
9/9/2013	1661	Cover short	9:30 AM	SH	28.48
9/9/2013	1661	Go Long	9:30 AM	SPY	166.21
9/27/2013	1689	Sell Long	9:59 AM	SPY	168.72
9/27/2013	1689	Go Short	9:59 AM	SDS	36.33
10/10/2013	1681	Cover short	10:45 AM	SDS	36.51
10/10/2013	1681	Go long	10:45 AM	SSO	84.47
10/23/2013	1746	Sell Long	9:51 AM	SSO	91.08
10/23/2013	1746	Go Short	9:51 AM	SDS	33.73
12/6/2013	1803	Cover short	12:41 PM	SDS	31.35
12/6/2013	1803	Go long	12:41 PM	SSO	97.48
12/10/2013	1803	Sell Long	11:56 AM	SSO	97.48
12/10/2013	1803	Go Short	11:56 AM	TWM	13.03
12/18/2013	1797	Cover short	2:36 PM	TWM	12.82
12/18/2013	1797	Go long	2:36 PM	SSO	96.73
12/31/2013	1848	Sell Long	4:00 PM	SSO	102.56
12/31/2013	1848	Go Long	4:00 PM	SSO	102.56

Begin Printing Trade Data Entries Exits Reverse Order

FINAL 2013

Mark and Set

Date Stamp 1/1/14; 7:27 AM EST

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1/1/14; Algorithm Zeroed for 2014 Data = +63; signal line is +41; go long 1848; (Benchmark SPX for 2013 Final = +29.6%)(Keybot this trade = +2.8%; Keybot for 2013 Final = +17.8%)(Actual this trade = +6.0%; Actual for 2013 Final = +12.4%)

12/31/13; 7:00 PM EST EOM EOQ4 EOY2013 = +63; signal line is +41

12/31/13; 3:45 PM EST = +63; signal line is +40

12/31/13; 2:30 PM EST = +49; signal line is +39

12/31/13; 10:00 AM EST = +63; signal line is +39

12/29/13; 7:00 PM EST = +61; signal line is +38

12/23/13; 10:00 AM EST = +61; signal line is +38

12/22/13; 7:00 PM EST = +60; signal line is +38

12/19/13; 10:36 AM EST = +60; signal line is +37

12/19/13; 10:11 AM EST = +46; signal line is +36

12/19/13; 9:39 AM EST = +60; signal line is +36

12/18/13; 3:20 PM EST = +46; signal line is +35

12/18/13; 2:38 PM EST = +32; signal line is +35 but algorithm stays long

12/18/13; 2:36 PM EST = +46; signal line is +36; go long 1797; (Benchmark SPX for 2013 = +26.0%)(Keybot this trade = +0.3%; Keybot for 2013 = +15.0%)(Actual this trade = -1.6%; Actual for 2013 = +6.4%)

12/18/13; 2:30 PM EST = +46; signal line is +36 but algorithm remains short

12/18/13; 9:00 AM EST = +32; signal line is +36