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