STOCK MARKET BULLISH -- LONG -- CAUTION

Keybot the Quant remains long. The XLF threatened to drop under 21.43 but receives a boost instead staying above and in the bull camp continuing to create market upside. While everyone was watching financials, the bulls slapped VIX silly, crushing it to 13.56, under the 13.93 bull-bear line in the sand in the final minute. The lower VIX will create bull juice tomorrow for equities unless the bears push VIX above 13.93 immediately at the opening bell.

To gain more upside strength, bulls need to push copper higher. Watch JJC 39.84. The bears need either XLF under 21.43 or VIX above 13.93 or they will keep folding like a cheap suit. For the SPX starting at 1845 for Wednesday, the bulls need to touch the 1853 handle and an upside acceleration to 1859 will occur in quick order. The bears need to push under 1840 to accelerate the downside. A move through 1841-1852 is sideways action. The bulls are cruising with the algo number 22 points above the signal line. Interestingly, the caution flag remains out because if the bears can achieve the XLF and VIX goals as listed above, and push the SPX under 1840, Keybot will likely flip short. Markets remain very unstable.

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

2/25/14; 3:59 PM EST = +62; signal line is +40

2/25/14; 11:47 AM EST = +48; signal line is +39