STOCK MARKET BULLISH -- LONG -- CAUTION

Keybot the Quant is long moving into the new week of trading. The bulls need XLF 21.38, UTIL 504.65, VIX 14.20 and/or JJC 40.02. Any parameter switching to the bull side (all four are currently causing market negativity) will send the SPX above 1800 and higher. The bears need GTX 4780 and/or UTIL 495.50 to stop the upside market momo. Both of these parameters are currently creating market bullishness. If all 5 parameters remain status quo, the markets will stagger sideways.

For the SPX starting at 1797, the bulls only need one single point, to push above 1798, to continue an upside thrust well above 1800. The bears need to retrace Friday's large upside move to regain mojo, a difficult task, so instead, bears will focus on pushing commodities and utilities lower, volatility higher, and financials and copper lower. A move through 1777-1797 is sideways action. Since the bulls only need one point higher to create another upside acceleration, the overnight futures are important. Any hint of green in the S&P futures will likely send the SPX to 1808-1809 on Monday. Therefore, the bears must keep the overnight futures negative to stop the upside market move.

The XLF is within pennies of the 21.38 bull-bear line in the sand so use this as a key metric when the opening bell rings. If XLF moves above 21.38, the broad indexes will continue strongly higher. If the bears hold the line at XLF 21.38, the upside move will likely stall. Keybot prints one pre-scheduled number this week on Friday morning. The bulls are driving the bus and will run over the bears with XLF 21.38. Market bears must prevent XLF 21.38 with all their might. XLF begins at 21.29. Check the trading direction of the large banks pre-market and that will likely provide the early market direction answer and set the market tone. Markets remain erratic and highly unstable.

2/16/14; 7:00 PM EST =

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

2/9/14; 7:00 PM EST = +0; signal line is -13

2/7/14; 9:00 AM EST = +0; signal line is -13