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

Keybot the Quant remains long moving into the new week of trading. As mentioned in the previous post, utilities will tell the story. The bears have the advantage with UTIL under the critical 506.57 which will remain a key level for the entire week. The algo number is expected to drop lower in the opening minutes of trading--unless the utilities jmp higher above UTIL 506.57. If UTIL moves above 506.57, the bulls will establish an upside recovery rally or at the least stabilize a sideways move. If UTIL stays under 506.57, markets will weaken and sell off.

In addition, the bulls need XLF 21.43 or GTX 4779 to lock in a firm upside move. The bulls ran out of gas in these two areas on Friday so the real decision maker for market direction is likely the utes as described above.

For the SPX starting at  1783, the bulls need to touch the 1794 handle to ignite an upside acceleration while the bears need to push under 1772 to accelerate the downside. A move through 1773-1793 is sideways action. The algo wants to go short (algo number is under the signal line) but the internal programming rules are prohibiting the move, for now. Keybot has one pre-scheduled number on tap Friday morning. The bulls are driving the bus but the bears are fighting for control of the steering wheel.

2/9/14; 7:00 PM EST =
2/7/14; 9:00 AM EST = 

2/2/14; 7:00 PM EST EOM = +2; signal line is +5 but algorithm remains long

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