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%)