STOCK MARKET BEARISH -- SHORT -- CAUTION -- TURN MAY BE IMMINENT

Keybot the Quant remains bearish but the algo number is dead tied with the signal line verifying the knock-down drag-out bull-bear struggle. Flip a coin to see who wins. Volatility collapsed today providing upside market rocket fuel. RTH teased its bull-bear level at 59.52-59.54 but failed. This is key. Bulls will head higher and not look back if the RTH 59.53 level and higher is achieved. If RTH turns bullish, and the SPX prints above 1875, and both remain bullish, Keybot will likely flip long. This may happen after the opening bell if the bulls mean business. Bears need to smack the retail stocks with all their might if they want to stay in the game. So tomorrow either provides the confirmation for the algo to flip long, or, the bears show up to fight. Bears are back in business if they can send VIX above 14.50.

For the SPX starting at 1872, the bulls need less than three points higher, above 1875, and an upside acceleration will occur that slices through 1878 resistance in a heartbeat and onward to the 1880's and the all-time highs. The bears must push under 1859 to regain their mojo. A move through 1860-1874 is sideways action for Tuesday. The bears have hung on for three weeks but cannot develop any sustainable downside action. Therefore the bulls are trying to run with the ball. The bulls had it on a silver platter today with RTH above 59.53 but interestingly, they could not hold it. Watch RTH 59.53, VIX 14.50 and SPX 1875 to determine market direction. RTH 59.53 is the battle ground and will tell the market story.

4/4/14; 9:00 AM EST =

3/31/14; 7:00 PM EST EOM EOQ1 = +47; signal line is +47 but algorithm remains short

3/31/14; 10:15 AM EST = +47; signal line is +48

3/31/14; 9:58 AM EST = +63; signal line is +48 but algorithm remains short

3/31/14; 9:36 AM EST = +47; signal line is +48

3/30/14; 7:00 PM EST = +33; signal line is +48

STOCK MARKET BEARISH -- SHORT -- CAUTION

Keybot the Quant remains bearish moving into the new week of trading. Bulls and bears continue fighting and the pivot at VIX 14.39 immediately identifies which side receives the nod to begin the week. Bears win with VIX remaining above 14.39. Bulls win with VIX under 14.39. Watch RTH 59.57 with price now below causing negativity in equities. Watch XLF 21.77 with price now above causing market bullishness. If VIX drops under 14.39, and RTH moves above 59.57, and the SPX prints above 1867, Keybot will likely flip long.

Pay attention to volatility since the bulls may jog VIX above and below the critical 14.39 as Monday proceeds. This will potentially enable bulls to jog the algo into place for a potential flip to the long side without needing the cooperation of RTH 59.57. So if the VIX crosses 14.39 every hour or so, above and below, a few times, that action is likely more favorable to bulls than bears.

For the SPX starting at 1858, the bulls need to touch 1867 and an upside acceleration will occur. Bears need price under 1850 to usher in strong selling in equities. Note how price begins in the exact middle of the top and bottom targets, each side needing about 8 handles to claim victory for their side. A move through 1851-1866 is sideways action for Monday.

The bears are driving the bus but markets remain a toss-up. If the SPX drops under 1850, or XLF under 21.77, the bears mean business and equities will finally commit to a more sustainable downside move. Bulls will be very happy and confident if VIX drops under 14.39. Keybot prints a pre-scheduled number Monday evening for EOM and also a number on Friday morning. The imminent turn status is not in the title line but if VIX drops under 14.39 consider an imminent turn to be in play.

4/6/14; 7:00 PM EST =

4/4/14; 9:00 AM EST =

3/31/14; 7:00 PM EST EOM =

3/30/14; 7:00 PM EST = +33; signal line is +48

3/28/14; 2:06 PM EST = +33; signal line is +49

STOCK MARKET BEARISH -- SHORT -- CAUTION

Keybot the Quant remains bearish through the weekend. VIX collapses into the closing bell to 14.41 only two cents from the 14.39 critical bull-bear level (VIX causes market selling pressure above 14.39). How does the algorithm always identify these key levels before they occur? VIX 14.39 will be key at Monday's opening bell. The retail and financial sectors are also important. The areas and levels of interest can be identified once the Sunday pre-scheduled number prints tomorrow. Monday is EOM.

3/31/14; 7:00 PM EST EOM =

3/30/14; 7:00 PM EST =

3/28/14; 2:06 PM EST = +33; signal line is +49

STOCK MARKET BEARISH -- SHORT -- CAUTION

Keybot the Quant remains short. The bears push volatility higher sending VIX above the 14.39 bull-bear line so markets leak lower well off the earlier highs. Bulls need lower volatility (VIX under 14.39) and/or higher retail (RTH 59.57). Bears need lower financials (XLF 21.76) to receive more downside fuel.

3/30/14; 7:00 PM EST =

3/28/14; 2:06 PM EST = +33; signal line is +49

3/28/14; 10:00 AM EST = +47; signal line is +49

STOCK MARKET BEARISH -- SHORT -- CAUTION -- TURN MAY BE IMMINENT

Keybot the Quant remains short as equities jump to the upside. Volatility is smacked in the face with the VIX dropping under 14 under the 14.39 bull-bear line. The lower volatility creates the upside rocket fuel for the indexes. The algo number is now only two ticks from the signal line verifying the ongoing bull-bear struggle. Bulls need RTH above 59.57 and Keybot will likely flip long. Bears must prevent RTH 59.57 and at the same time push the VIX higher back above 14.39 to usher in negativity.

The SPX pushed through 1855.50 so price jumped into the 1860's. Watch RTH 59.57 and VIX 14.39 for the market direction answer.

3/30/14; 7:00 PM EST =

3/28/14; 10:00 AM EST = +47; signal line is +49

3/28/14; 9:36 AM EST = +47; signal line is +50

3/26/14; 3:16 PM EST = +33; signal line is +50

STOCK MARKET BEARISH -- SHORT -- CAUTION

Keybot the Quant remains short as the sideways circus continues. The algo did not print any numbers in the Thursday session. A pre-scheduled number prints this morning at 10 AM. Keybot appears most interested in volatility and financials. Bulls need VIX under 14.39 to launch equities higher. Bears need XLF under 21.76 to lock-in a strong downside market move. If VIX stays above 14.39, and XLF stays above 21.76, equities will float along sideways into the weekend.

For the SPX starting at 1849, only one single point higher for the year, and 10 points lower for the month of March thus far, the bulls need to push up through 1855.50, about 6 or 7 points higher, and an upside acceleration will occur into the 1860's. S&P futures are +6. The bears need to push under 1842 to accelerate the downside. A move through 1843-1855 is sideways action into the weekend. March ends Monday; EOM. Markets remain unstable.

An interesting development is occurring where even if the VIX turns bullish today dropping under 14.39, it will likely not be sufficient enough to cause Keybot to flip long. Bulls will likely need stronger retail (RTH 59.60) and/or stronger copper (JJC 37.85), in addition to lower volatility, to lock-in a sustainable upside rally. Thus, the imminent turn status is not displayed. If RTH moves above 59.60 today, the bulls mean serious business and plan to flip the algo long.

3/30/14; 7:00 PM EST =

3/28/14; 10:00 AM EST =

3/26/14; 3:16 PM EST = +33; signal line is +50

STOCK MARKET BEARISH -- SHORT -- CAUTION

Keybot the Quant remains bearish as the roller coaster ride continues. The algo prints four numbers yesterday. The gap-up scenario occurred so the algorithm was prohibited from flipping sides for 87 minutes. At about 11 AM as the timer expired, the bulls only needed to push the SPX above 1872 to claim victory. Price went up through 1872 for only one minute's time and then tumbled to the downside the rest of the day. The bulls did not have the upside oomph. RTH then failed 59.60 ushering in market negativity. Volatility jumped higher creating additional bearishness.

Watch RTH 59.60 and VIX 14.39 as bull-bear lines in the sand. Both are causing market bearishness now with the RTH at 59.13 and VIX at 14.93. Bears need a stronger retail sector and/or lower volatility or they got nothing. For the SPX starting at 1853, having closed at the low print yesterday, the bulls need a strong 23-handle upside rally move to regain their mojo, a formidable task, but not impossible in these wild, erratic and unstable markets. Since this is a difficult task, the imminent turn status is removed but will immediately return if the RTH or VIX turn bullish.

The bears need to push the SPX any amount lower, any tiny smidge, and this will create several more handles of downside. S&P futures are +3 at this writing about three hours before the US opening bell so the bulls are trying to prevent further downside damage. A move through SPX 1854-1875 is sideways action today. The bears continue to drive the bus but the bulls are tenacious and do not want the long 5-year rally party to end.

3/30/14; 7:00 PM EST =

3/28/14; 10:00 AM EST =

3/26/14; 3:16 PM EST = +33; signal line is +50

3/26/14; 3:02 PM EST = +47; signal line is +51

3/26/14; 1:38 PM EST = +33; signal line is +51

3/26/14; 12:31 PM EST = +47; signal line is +52

3/25/14; 3:45 PM EST = +63; signal line is +52 but algorithm remains short

STOCK MARKET BEARISH -- SHORT -- CAUTION -- TURN MAY BE IMMINENT

Keybot the Quant remains short. The markets are a circus. The algo prints 10 numbers in a very active day. Keybot wants to go long now but the internal programming rules have not latched into place properly as yet to trigger the flip to the long side. If the SPX moves above 1872 in the Wednesday session, and remains above, Keybot will likely flip long. If there is a gap-up opening, however, the algo may trigger a timer that could delay the move for about 90 minutes time. Bears must send RTH under 59.61 and/or VIX above 14.39 to stop the market upside and create negativity. Bulls will receive further fuel if copper keeps moving higher, especially JJC above 37.85.

For the SPX starting at 1866, the bulls need to touch the 1872 handle and an upside acceleration will occur. The bears need to push under 1856 to create a downside acceleration. A move through 1857-1871 is sideways action for Wednesday. The bulls have it on a silver platter; all they need is about six points higher in the S&P futures overnight and that will create the path to new all-time highs for the SPX in the 1880's. The bears must come to play and push the retail sector lower (RTH) and volatility higher (VIX) with all their might.

3/28/14; 10:00 AM EST =

3/25/14; 3:45 PM EST = +63; signal line is +52 but algorithm remains short

3/25/14; 3:21 PM EST = +49; signal line is +51

3/25/14; 3:13 PM EST = +33; signal line is +51

3/25/14; 2:35 PM EST = +49; signal line is +52

3/25/14; 1:32 PM EST = +63; signal line is +52 but algorithm remains short

STOCK MARKET BEARISH -- SHORT -- CAUTION -- TURN MAY BE IMMINENT

Keybot the Quant remains short as the bears fight back sending VIX above 14.39 causing negativity. In addition, RTH ventures lower and is only a few pennies above the critical 59.61 bull-bear line in the sand. If RTH loses 59.61, equities will move strongly lower. If VIX moves under 14.39, equities will recover today. The imminent turn status remains since markets are at a dicey juncture.

3/28/14; 10:00 AM EST =

3/25/14; 10:56 AM EST = +49; signal line is +53

3/25/14; 10:00 AM EST = +63; signal line is +53 but algorithm remains short

STOCK MARKET BEARISH -- SHORT -- CAUTION -- TURN MAY BE IMMINENT

Keybot the Quant remains short but the algorithm is very near flipping to the long side. RTH jumped over 60. VIX collapsed under 14.39. The bulls are running towards SPX 1873. The imminent turn status is back in play and will only be removed if the VIX moves back above 14.39 or RTH under 59.61. Keybot will likely flip to the long side if the SPX prints above 1873 and higher and remains higher.

3/28/14; 10:00 AM EST =

3/25/14; 10:00 AM EST = +63; signal line is +53 but algorithm remains short

3/25/14; 9:36 AM EST = +62; signal line is +52 but algorithm remains short

3/24/14; 1:34 PM EST = +48; signal line is +52

STOCK MARKET BEARISH -- SHORT -- CAUTION

Keybot the Quant remains short after another roller coaster day. The retail sector is driving the stock market right now. Watch RTH 59.61. Price dropped under yesterday which ushered in the market selling then the bulls pushed RTH above to close at 59.72 which created the recovery into the closing bell. So bears need RTH under 59.61 and bulls must maintain RTH above 59.61. Bears will also seek GTX 4870 to gain downside fuel. Bulls will seek VIX 14.39 to create a very strong recovery rally and place the algorithm on imminent turn status. If VIX drops under 14.39, and the SPX moves above 1873, and both remain bullish, Keybot will likely flip long. The SPX needs to gain 16 handles today to help the bulls; in these markets anything can happen.

For the SPX starting at 1857, now down for the month of March, the bulls need to push above 1873 to accelerate the upside for another attack at the all-time highs. The bears need to push under 1850 to accelerate the downside. The 1848-1852 is a strong support gauntlet where price bounced yesterday. A failure of 1850 will likely lead to far lower numbers on the SPX going forward. A move through 1851-1872 is sideways action for Tuesday. Keybot prints a pre-scheduled number at 10 AM. Bears continue to drive the bus but markets remain a toss-up. RTH 59.61 provides the answer.

3/28/14; 10:00 AM EST =

3/25/14; 10:00 AM EST =

3/24/14; 1:34 PM EST = +48; signal line is +52

3/24/14; 11:31 AM EST = +32; signal line is +52

STOCK MARKET BEARISH -- SHORT -- CAUTION

Keybot the Quant remains short as the new week of trading begins and the algo prints a number a short time ago providing a further nod to bears. The retail sector flies to the forefront with the algo fixated on RTH 59.60. Price fell under today ushering in market weakness. Simply watch RTH 59.60 since equities will recover higher today if price moves above. If price stays under RTH 59.60, equities will remain weak and head lower. The bears are driving the bus fueled by weaker copper, VIX 14.40 and RTH 59.60 as the three key negative components.

3/25/14; 10:00 AM EST =

3/24/14; 11:31 AM EST = +32; signal line is +52

3/23/14; 7:00 PM EST = +48; signal line is +54

STOCK MARKET BEARISH -- SHORT -- CAUTION

Keybot the Quant remains bearish as the new week of trading begins. The algo identifies volatility and commodities as the two key market directional drivers currently. Watch VIX 14.28. VIX is at 15 causing bearishness so the bulls need VIX 14.28 or they got nothing. Watch GTX 4864. GTX is at 4911 causing bullishness in equities so the bears need GTX 4864 if they want to create more downside energy.

For the SPX starting at 1867, the bulls need to move above 1884 and an upside acceleration into the 1890's occurs in quick order. The bears need to push under 1863.50 to accelerate the downside. A move through 1864-1883 is sideways action for Monday. If the VIX drops under 14.28, consider the imminent turn status to be in immediate play, and if the SPX moves above 1884, and both parameters remain bullish, Keybot will likely flip long.S&P futures are +1 on Sunday evening. Keybot prints two pre-scheduled numbers this week; one on Tuesday morning and one on Friday morning.

3/30/14; 7:00 PM EST =

3/28/14; 10:00 AM EST =

3/25/14; 10:00 AM EST =

3/23/14; 7:00 PM EST = +48; signal line is +54

3/21/14; 1:28 PM EST = +48; signal line is +54

STOCK MARKET BEARISH -- SHORT -- CAUTION

Keybot the Quant remains short through the weekend. The broad indexes stumble sideways for a few days with wild upside and downside whipsaw moves occurring intraday. The algo keeps moving into position to flip to the bullish side but the program is not able to latch the required parameters to create the flip to the long side. Markets remain a coin-flip. Volatility continues to play the key role currently in determining market direction. Commodities are also important. The algo appears fixated on VIX 14.28 and GTX 4862 but these numbers can be fine-tuned once the Sunday pre-scheduled number prints tomorrow. The bulls will likely need almost 20 SPX handles to flip to the long side on Monday so the imminent turn status is removed, for now. The beat goes on.

3/23/14; 7:00 PM EST =

3/21/14; 1:28 PM EST = +48; signal line is +54

3/21/14; 10:54 AM EST = +62; signal line is +53 but algorithm remains short

3/21/14; 10:13 AM EST = +48; signal line is +52

3/21/14; 9:36 AM EST = +62; signal line is +52 but algorithm remains short

3/19/14; 2:44 PM EST = +48; signal line is +52

STOCK MARKET BEARISH -- SHORT -- CAUTION -- TURN MAY BE IMMINENT

Keybot the Quant remains short as the markets stagger along and the important SPX 1874 resistance appears to keep holding. The algo motored along today and did not print any numbers. Bears need to push GTX under 4862 to gain downside fuel. Bulls need VIX under 14.28 to gain upside fuel. If VIX moves below 14.28, and SPX above 1874, and both remain bullish, Keybot will likely flip long.

For Friday with the SPX starting at 1872, the bulls only need a couple points, to poke up through 1874, and an upside acceleration to the all-time highs will occur. The bears need to push under 1855 to accelerate the downside. A move through 1856-1873 is sideways action moving into the weekend. Markets are very erratic and indecisive. A firm commitment one way or the other should surface in the days ahead. The bears remain with the edge but markets remain a coin-flip. Watch volatility and commodities. If the dollar heads higher, commodities will weaken moving forward.

3/23/14; 7:00 PM EST =

3/19/14; 2:44 PM EST = +48; signal line is +52

STOCK MARKET BEARISH -- SHORT -- CAUTION -- TURN MAY BE IMMINENT

Keybot the Quant remains short after an active afternoon. Volatility exploded higher which sent equities lower. Watch VIX 14.30, now at 15.12 causing market negativity. Watch GTX 4864, now at 4917 causing market bullishness. So bears need GTX 4864 to receive more downside fuel while the bulls need VIX 14.30 to send equities higher. If the VIX drops under 14.30, and the SPX prints above 1874, and both remain bullish, Keybot will likely flip long, hence the imminent turn notation remains.

For the SPX starting at 1861 in the Thursday session, the bulls need to push above the strong 1874 resistance to create an upside acceleration into the 1880's. The bears need to push under 1850 to accelerate the downside. A move through 1851-1873 is sideways action. The markets explore a wide range today and end in the middle unable to fully commit to one side or the other. The bears continue to have a small edge but equities remain a coin-flip. Bears need lower commodities and financials. Bulls need lower volatility.

3/23/14; 7:00 PM EST =

3/19/14; 2:44 PM EST = +48; signal line is +52

3/19/14; 2:25 PM EST = +62; signal line is +52 but algorithm remains short

3/19/14; 2:05 PM EST = +48; signal line is +52

3/19/14; 1:30 PM EST = +62; signal line is +51 but algorithm remains short

3/18/14; 2:21 PM EST = +48; signal line is +51

STOCK MARKET BEARISH -- SHORT -- CAUTION -- TURN MAY BE IMMINENT

Keybot the Quant remains short as equities rocket higher. VIX fell under the critical 14.27 level to provide bull fuel for the broad indexes, but the bears fight back and pull VIX higher to close on the bear side above 14.27. VIX begins Wednesday at 14.52. VIX 14.27 determines market direction. If the VIX drops under 14.27, and the SPX moves above 1874, and both remain bullish, Keybot will likely flip long.

For the SPX starting at 1872, receiving a spank down from the strong 1874 resistance, bulls only needs two points higher, to punch up through the 1874 resistance and a test of the all-time highs in the 1880's is on tap in quick order. The bears must push under 1859 support, 13 points lower, to accelerate the downside. A move through 1860-1873 is sideways action. It is surprising the bulls could not simply lock in the upside (considering the strong push higher over the last couple days) by keeping VIX below 14.27. Bulls had it but could not hold on. Markets likely want to idle until Fed Chair Yellen brings the tablets down from on high to dictate market direction. Watch VIX 14.27 and SPX 1874.

3/23/14; 7:00 PM EST =

3/18/14; 2:21 PM EST = +48; signal line is +51

3/18/14; 1:36 PM EST = +62; signal line is +51 but algorithm remains short

3/18/14; 11:49 AM EST = +48; signal line is +51

3/18/14; 11:31 AM EST = +62; signal line is +51 but algorithm remains short

STOCK MARKET BEARISH -- SHORT -- CAUTION -- TURN MAY BE IMMINENT

Keybot the Quant remains short as volatility collapses lower under 15 and down to and through the VIX 14.27 bull-bear line in the sand. The VIX recovered and is now pennies above 14.27 on the bear side. The imminent turn status is in play since the VIX is teasing 14.27. If the VIX drops under 14.27, and the SPX prints above 1872, and both remain bullish, Keybot will likely flip long. Market bears need to hold the line at VIX 14.27, otherwise they will fold like a cheap suit. The SPX ran up through 1868 resistance, now support, then to the strong 1874 resistance which held so far and price now bounces sideways in between. If VIX drops under 14.27, the SPX will punch up through 1874 like it is not even there. The broad market direction hinges on VIX 14.27.

3/23/14; 7:00 PM EST =

3/18/14; 11:49 AM EST = +48; signal line is +51

3/18/14; 11:31 AM EST = +62; signal line is +51 but algorithm remains short

3/18/14; 9:00 AM EST = +48; signal line is +51

3/16/14; 7:00 PM EST = +48; signal line is +51

STOCK MARKET BEARISH -- SHORT -- CAUTION -- TURN MAY BE IMMINENT

Keybot the Quant remains short as the algo motors along for another day without printing any numbers. The algo considers volatility and commodities as the two main market drivers currently; VIX 14.30, which is now causing bearishness at 15.64, and GTX 4861, which is not causing bullishness at 4882 only 21 points away. Bulls need VIX under 14.30 which guarantees an upside ride higher for equities to test the all-time highs. Bears need GTX under 4861 which will send equities a leg lower and lock in sustainable downside for equities.

For the SPX starting at 1859, the bulls need to push up through 1862 and an upside acceleration will occur targeting 1868, then 1871, then 1874. The bears need to push down through 1843 to accelerate the downside to 1838 then 1832. A move through 1844-1861 is sideways action. If VIX drops under 14.30, and the SPX prints above 1862, and both remain bullish, Keybot will likely flip long. If GTX fails 4861, markets sell off. Equities remain erratic and unstable.

3/18/14; 9:00 AM EST =

3/16/14; 7:00 PM EST = +48; signal line is +51

STOCK MARKET BEARISH -- SHORT -- CAUTION

Keybot the Quant remains short moving into the new week of trading. Elevated volatility is causing market negativity. Elevated financials, commodities and retail are keeping the bulls in business and preventing any further drop in equities. Therefore, the bulls need VIX under 14.15 to signal the all-clear and restart the market upside. The bears need either XLF under 21.65, GTX under 4856 and/or RTH under 59.40. Any 1 of the 3 will increase market selling pressure and lock in more sustainable downside action going forward.

For the SPX starting at 1841, the bulls need to push above 1852 and price will accelerate higher to 1859. The bears need to drop down through 1840, only one point lower, and the downside will accelerate and begin targeting 1828. Thus, any negativity in the overnight S&P futures will provide a green light for bears. Bulls need to keep the overnight futures positive with all their might. A move through 1841-1851 is sideways action for Monday.

If the VIX moves under 14.15 and the SPX above 1852, and both remain bullish, Keybot will likely flip long, hence, the caution flag remains out. If either XLF, GTX or RTH turn bearish, the caution flag will be removed since the bears will be pushing equities much lower. Keybot prints one pre-scheduled number this week on Tuesday morning. The algo only printed one number last week, a pre-scheduled number, so the algo actually has not generated a number based on the program's variables and parameters in over one week's time which is very odd behavior. Markets may be at a key inflection point. The parameters above will tell you the winner. The broad indexes remain erratic and unstable. The higher volatility will now create larger and larger intraday and day to day point swings.

3/23/14; 7:00 PM EST =

3/18/14; 9:00 AM EST =

3/16/14; 7:00 PM EST = +48; signal line is +51

3/14/14; 10:00 AM EST = +48; signal line is +51

STOCK MARKET BEARISH -- SHORT -- CAUTION

Keybot the Quant remains short. The big spike higher in volatility creates market weakness. Equities remain a crap-shoot. Volatility, financials, commodities and retail all appear important for next week. Keybot did not print any numbers the whole week except for the pre-scheduled Friday number. This illustrates the ongoing market indecision. The SPX moves through 1840-1880, a 40-handle range, for the last month. Areas and levels of interest to the algo can be identified once the pre-scheduled Sunday number prints. 

3/16/14; 7:00 PM EST =

3/14/14; 10:00 AM EST = +48; signal line is +51

3/9/14; 7:00 PM EST = +48; signal line is +51

STOCK MARKET BEARISH -- SHORT -- CAUTION

Keybot the Quant remains short as volatility catapulted higher today. The algo has not printed a number at all this week. A pre-scheduled number prints tomorrow one-half hour after the opening bell. VIX 14.10 is the bull-bear line in the sand. Bulls need to send VIX under 14.10 to stop the selling. Bears can receive additional fuel with either GTX 4855, RTH 59.35 and/or XLF 21.60. If VIX remains bearish and commodities, retail and financials remain bullish, respectively, then equities will float sideways into the weekend.

For the SPX starting at 1846, the bulls need to retrace the large sell off and regain 1874 which is probably not likely. The bears need to push under 1842 to accelerate the downside quickly into the 1830's. A move through 1843-1873 is sideways action. The imminent turn notation is removed since bulls would need the SPX to run above 1874 but if the VIX drops under 14.10, consider the imminent turn back on the table. If either GTX, RTH or XLF turn bearish as described above, any one of the three is all that is needed, this locks-in more sustainable and extended market downside going forward.

3/16/14; 7:00 PM EST =

3/14/14; 10:00 AM EST =

3/9/14; 7:00 PM EST = +48; signal line is +51

STOCK MARKET BEARISH -- SHORT -- CAUTION -- TURN MAY BE IMMINENT

Keybot the Quant remains short as market indecision continues. The bears started to push lower with the VIX up over 15 but then the bulls fight back and bring equities back to the flat line pushing volatility lower. The algo has not printed a number this week; not for three days. The battle is at VIX 14.02. VIX is causing market negativity at 14.47 right now. The bulls will send markets higher if VIX drops under 14. Bears will increase the equity selling if VIX moves higher.

For the SPX on Thursday beginning at 1868, the bulls have an easy road, only needing to see a tiny smidge of green in the overnight S&P futures and this will set up a several handle upside launch well into the 1870's. The bears need to push below 1854 to accelerate the downside. A move through 1855-1867 is sideways action. The imminent turn notation is added to the title line. If the VIX drops under 14.02, and the SPX prints above 1868, and both remain bullish, Keybot will likely flip to the long side. Markets remain a coin-flip. VIX 14.02 tells the story.

3/14/14; 10:00 AM EST =

3/9/14; 7:00 PM EST = +48; signal line is +51

STOCK MARKET BEARISH -- SHORT -- CAUTION

Keybot the Quant remains short. The algo did not print any numbers for the Tuesday session and volatility remains the key; VIX 14. VIX remains above 14 so this creates equity weakness. The bulls need to push VIX under 14 or they got nothing. Bears need to start pushing volatility far higher, above 15, to increase market negativity.

For the SPX starting at 1868, the bulls need to push above 1882 to create an upside acceleration to 1890 in quick order. The bears need to push under 1864 to accelerate the downside. A move through 1865-1881 is sideways action. If the VIX drops under 14 and the SPX moves above 1882, and both remain bullish, the algo will likely flip long. Since this goal for bulls is about 14 SPX handles higher, a formidable task but not impossible, the imminent turn notation is removed, for now. If VIX drops under 14, consider the imminent turn notation to be in affect again since the algo will be positioning for a move to the long side.

The bears are starting to push markets lower since they are keeping the VIX elevated. The higher the VIX goes, the lower the market goes. The Wednesday session is critical to see if the upward move in volatility continues, or not.

3/14/14; 10:00 AM EST =

3/9/14; 7:00 PM EST = +48; signal line is +51

STOCK MARKET BEARISH -- SHORT -- CAUTION -- TURN MAY BE IMMINENT

Keybot the Quant remains short moving into the Tuesday session and did not print any numbers on Monday. The stock market remains a coin flip. Volatility remains the key market driver currently. The VIX bull-bear line is 14.00. VIX begins the day at 14.20 causing market negativity. If VIX stays above 14 and moves higher, equities sell off. If the VIX falls through 14, equities rally higher.

For the SPX starting at 1877, the bulls only need one point, to touch the 1878 handle and an upside acceleration will occur. The bears need to push under 1867 to accelerate the downside. A move through 1868-1877 is sideways action. The imminent turn notation remains since if VIX drops under 14 and the SPX moves above 1878, and both remain bullish, Keybot will likely flip to the long side. Markets are unstable not knowing which way to turn. VIX 14 is the pivot level that provides the answer.

3/14/14; 10:00 AM EST =

3/9/14; 7:00 PM EST = +48; signal line is +51

STOCK MARKET BEARISH -- SHORT -- CAUTION -- TURN MAY BE IMMINENT

Keybot the Quant is bearish to begin the new week of trading. VIX 13.98 will continue to tell the market story. Bears win above. Bulls win below. VIX begins the week in the bear camp at 14.11. For the SPX starting at 1878, the bulls need to punch up through 1883.50 and an upside acceleration to 1890 will occur. The bears need to push under 1871 to accelerate the downside. A move through 1872-1883 is sideways action for Monday. S&P futures are -5 about five hours before the US opening bell. Markets remain erratic and very unstable. If the VIX drops under 13.98, and the SPX moves above 1884, and both remain bullish, Keybot may flip back to the long side.

3/16/14; 7:00 PM EST =

3/14/14; 10:00 AM EST =

3/9/14; 7:00 PM EST = +48; signal line is +51

3/7/14; 1:06 PM EST = +48; signal line is +51

STOCK MARKET BEARISH -- SHORT -- CAUTION -- TURN MAY BE IMMINENT

Keybot the Quant flips to the bear side today at SPX 1873. The drama with volatility will continue into Monday. VIX 13.98 will continue to identify the winner moving forward. Bears receive the trophy for the weekend with VIX at 14.11 albeit only 13 cents on the bearish side. For the last period from the long side to the short side, the algo program gained +1.5%. The actual trading underperformed only gianing +0.7% since tech underperformed this week. Keybot cycled out of QLD and into SDS. As always stay alert for a whipsaw on Monday. Markets remain a coin-flip. Today was an active day with the algo printing seven numbers. The imminent turn notation remains since VIX 13.98 cannot make up its mind.

3/9/14; 7:00 PM EST =

3/7/14; 1:06 PM EST = +48; signal line is +51

3/7/14; 12:25 PM EST = +62; signal line is +51 but algorithm remains short

3/7/14; 11:03 AM EST = +48; signal line is +51; go short 1873; (Benchmark SPX for 2014 = +1.4%)(Keybot this trade = +1.5%; Keybot for 2014 = +4.0%)(Actual this trade = +0.7%; Actual for 2014 = +4.7%)

3/7/14; 10:20 AM EST = +62; signal line is +51

3/7/14; 9:53 AM EST = +48; signal line is +51 but algorithm remains long

3/7/14; 9:36 AM EST = +62; signal line is +51

3/7/14; 9:00 AM EST = +48; signal line is +50 but algorithm remains long

3/6/14; 1:33 PM EST = +48; signal line is +49 but algorithm remains long

3/5/14; 3:55 PM EST = +62; signal line is +49

3/5/14; 11:19 AM EST = +48; signal line is +47

3/5/14; 11:07 AM EST = +62; signal line is +46

3/3/14; 12:18 PM EST = +48; signal line is +45

3/3/14; 12:06 PM EST = +32; signal line is +44 but algorithm remains long

3/2/14; 7:00 PM EST EOM = +48; signal line is +44

2/28/14; 2:51 PM EST = +48; signal line is +43

2/28/14; 10:05 AM EST = +62; signal line is +43

2/28/14; 10:00 AM EST = +48; signal line is +43

2/27/14; 10:41 AM EST = +48; signal line is +44

2/27/14; 10:13 AM EST = +32; signal line is +44 but algorithm remains long

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

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

2/26/14; 11:51 AM EST = +48; signal line is +43

2/26/14; 11:27 AM EST = +62; signal line is +43

2/26/14; 11:03 AM EST = +48; signal line is +42

2/26/14; 10:43 AM EST = +62; signal line is +42

2/26/14; 10:07 AM EST = +48; signal line is +41

2/26/14; 9:58 AM EST = +32; signal line is +41 but algorithm remains long

2/26/14; 9:40 AM EST = +48; signal line is +41

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

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

2/25/14; 11:36 AM EST = +62; signal line is +38

2/25/14; 10:00 AM EST = +48; signal line is +36

2/24/14; 9:45 AM EST = +48; signal line is +35; go long 1846; (Benchmark SPX for 2014 = -0.1%)(Keybot this trade = -1.0%; Keybot for 2014 = +2.5%)(Actual this trade = -3.8%; Actual for 2014 = +4.0%)

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

Keybot the Quant remains long but the algorithm wants to go short. The bulls pushed VIX under 13.98 creating the opening pop in equities, but the bears sent VIX back above 13.98 to create the market drop off the highs. If the SPX drops under 1874 and the VIX remains above 13.98, Keybot will likely flip short. The SPX prints a LOD at 1875.30 only one point away. The drama continues. Bulls need to push VIX under 13.98 so they can move equities higher and celebrate into the weekend.

3/9/14; 7:00 PM EST =

3/7/14; 9:53 AM EST = +48; signal line is +51 but algorithm remains long

3/7/14; 9:36 AM EST = +62; signal line is +51

3/7/14; 9:00 AM EST = +48; signal line is +50 but algorithm remains long

3/6/14; 1:33 PM EST = +48; signal line is +49 but algorithm remains long

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

Keybot the Quant remains long. Volatilty is key and today was a reversal of yesterday's drama. VIX started the session under the important 13.98 bull-bear line in the sand so the bulls were walking around with their chests puffed out. From mid day forward, however, the bears sent the VIX above 13.98, punching the bulls in the face, and VIX remains above 13.98 causing market negativity. The fight continues tomorrow at VIX 13.98. Keybot is in position to go short right now but is held back since other programming rules must latch to trigger the move. For Friday, if the VIX remains above 13.98, and the SPX drops under 1874, and both remain bearish, Keybot will likely flip short. If there is a gap down opening, the algo may not flip short right away despite the markets selling off. A timer may trigger that would hold Keybot back for about 90 minutes to allow the markets to settle.

For the SPX starting at 1877, the bulls need to touch the 1882 handle and an upside acceleration to ring the bell at 1890 will occur in quick order. The bears need to push under 1874 to accelerate the downside, and, as mentioned above, Keybot will likely flip short. A move through 1875-1881 is sideways action. If the VIX drops under 13.98, the bears will fold like a cheap suit and the bulls will be partying higher into the weekend. With the above theatrics set in place, obviously the stage is set for the Monthly Jobs Report at 8:30 AM EST. This data will force futures in one direction or the other and provide the path forward using the above description as the guide. The 8:30 AM jobs data will tell the market story for Friday and perhaps well into next week. Keybot prints a pre-scheduled number pre-market.

3/9/14; 7:00 PM EST =

3/7/14; 9:00 AM EST =

3/6/14; 1:33 PM EST = +48; signal line is +49 but algorithm remains long

3/5/14; 3:55 PM EST = +62; signal line is +49

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

Keybot the Quant is bullish moving into the Thursday session with some drama on tap. Financials rocket higher and are firmly in the bull camp causing market lift. The big fight today was volatility; the VIX 13.98 bull-bear line in the sand. The bears kept the VIX above 13.98 the whole day, albeit a few minutes before lunch time, but in the closing minutes the bears folded like a cheap suit and the VIX turns bullish below 13.98 that will add a new up leg to equities. Or will it? The algo is very sly in the way it operates. Note how it keeps ratcheting up the signal line. Even though financials ran vertically and are now firmly bullish, a simple change of higher volatility (VIX back above 13.98) will place the algo in position to go short. Copper is a main factor causing market weakness currently.

Watch VIX 13.98 like a hawk; it determines the fate of markets. Bulls run equities higher if it stays under 13.98. If VIX moves above 13.98, the bears will be pushing equities lower and if the SPX loses 1871, and both these parameters remains bearish, Keybot will likely flip short. For the SPX starting at 1874, the bulls need to push up through 1876.50 and it is smooth sailing higher with the SPX above 1880 in a heartbeat. The bears need to push below 1871 to accelerate the downside. A move through 1872-1876 is sideways action. The bulls are steering the bus but the bears have their hands on the wheel as well and are trying to wrestle back control. VIX 13.98 and SPX 1871 will tell the market story on Thursday. If VIX stays under 13.98, bulls will be throwing confetti all day long.

3/7/14; 9:00 AM EST =

3/5/14; 3:55 PM EST = +62; signal line is +49

3/5/14; 11:19 AM EST = +48; signal line is +47

3/5/14; 11:07 AM EST = +62; signal line is +46

3/3/14; 12:18 PM EST = +48; signal line is +45

STOCK MARKET BULLISH -- LONG -- CAUTION

Keybot the Quant remains long. The bulls stage a strong recover rally after the market drubbing the day before. The bears need weaker financials, to drive the XLF under 21.47, but instead price continues higher now at 21.97. Bulls need VIX under 13.97 but price remains in bear territory at 14.10. With such a huge up day the bulls should have pushed volatility lower. If VIX falls under 13.97, equities will continue higher with SPX 1880+ a done deal. Bears must hold the line at VIX 13.97 and also hold the line with copper at JJC 39.65.

For the SPX starting at a new all-time high at 1874, the bulls only need two points, to punch up through 1876 and 1880+ is next. The bears will fight to prevent SPX 1876 and VIX 13.97 to stop the market upside. A move through SPX 1850-1875 is sideways action. The bears need XLF lower to turn things around so considering the big up in XLF today, the imminent turn notation is removed for now. The bulls are cruising but stay alert and cautious since the algo number is only 3 points from the signal line and the markets are very erratic and unstable.

3/7/14; 9:00 AM EST =

3/3/14; 12:18 PM EST = +48; signal line is +45

3/3/14; 12:06 PM EST = +32; signal line is +44 but algorithm remains long

3/2/14; 7:00 PM EST EOM = +48; signal line is +44

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

Keybot the Quant is long moving into the new week of trading. Bears need to push XLF under 21.44 to send equities lower. Bulls need VIX under 13.92 to send equities higher. The bulls would receive further upside fuel with JJC 39.76 but copper continues to slump. S&P futures are -13 at this writing about 5-1/2 hours before the US opening bell so the bears want to run. If XLF drops under 21.44, and the SPX under 1848, and both remain under, Keybot will likely flip short. The low intraday prints in the SPX are important. After the initial drop, write down the LOD and watch this number closely. The algo typically wants to see continued lower lows printing to flip to the short side.

For the SPX, starting at 1859, the bulls need to touch the 1868 handle to accelerate the upside but this outcome looks highly unlikely in the context of the weak futures. The bears need to push under 1848 to accelerate the downside and a test at 1847-1848 appears likely. A move through 1849-1867 is sideways action for Monday. The algo prints one pre-scheduled number this week on Friday. Watch XLF 21.44 since bears got nothing without this. Then watch SPX 1848 and the behavior of the low intraday prints as the day proceeds.

3/9/14; 7:00 PM EST =

3/7/14; 9:00 AM EST =

3/2/14; 7:00 PM EST EOM = +48; signal line is +44

2/28/14; 2:51 PM EST = +48; signal line is +43

STOCK MARKET BULLISH -- LONG -- CAUTION

Keybot the Quant is long through the weekend. The bears fight back late-day yesterday sending the VIX above 13.93. This creates the late-day equity weakness. Volatility, financials and copper are the 3 key parameters controlling market direction currently. Levels of interest can be identified once the pre-scheduled Sunday number prints tomorrow. Bulls need lower volatility and higher copper. Bears need lower financials and higher volatility. 

3/2/14; 7:00 PM EST EOM =

2/28/14; 2:51 PM EST = +48; signal line is +43

2/28/14; 10:05 AM EST = +62; signal line is +43

2/28/14; 10:00 AM EST = +48; signal line is +43