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

Keybot the Quant remains long moving into the Thursday session. Today is a battle between financials and volatility; the two main market drivers currently. XLF is at 21.48 above the critical 21.43 bull-bear line in the sand identified by the algo; only one nickel above. This creates market bullishness and keeps equities elevated. VIX is 14.35 above the critical 13.93 bull-bear line in the sand. This creates market weakness. Thus, very simply, bears need XLF under 21.43 to claim victory and send equities lower. Bulls need VIX under 13.93 to throw confetti and finally print new all-time closing highs for the SPX in the days ahead.

For the SPX starting at 1845, the bulls need to touch the 1853 handle to accelerate the upside. Price keeps trying to punch through the 1851-1853 overhead resistance. Bears need to push below 1841 to accelerate the downside. A move through 1842-1852 is sideways action. If XLF loses 21.43, and remains under, and the SPX drops under 1841, and remains under, Keybot will likely flip short.

At 5:30 AM EST, S&P futures are -5 and dropping, losing 9 handles over the last hour. Russia is stirring up the pot in the Ukraine which is casting a dark cloud over today's global markets. Markets remain very unstable and erratic. The imminent turn notation is added in the title line since, as described above, a few pennies lower in XLF, and 4 or 5 handles lower in the SPX, will likely cause Keybot to flip short.

2/28/14; 10:00 AM EST =

2/26/14; 1:09 PM EST = +48; signal line is +44

2/26/14; 12:40 PM EST = +62; signal line is +43