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

Keybot the Quant flips to the long side yesterday after the opening bell. The bears put up a fight on Wednesday but folded like a cheap suit yesterday. As always, stay alert for a whipsaw either today or Tuesday especially in these choppy sideways roller coaster markets. The algo program lost one-half percent on the last trade and the actual trading lost -1.1%. The benchmark SPX is now up over +2% on the year. Keybot cycled out of SDS and into SSO remaining in the leveraged ETF's. The actual trading return for 2014 turns negative as the choppy markets eat up profits. The imminent turn status remains since the bears could easily turn the tables on the bulls again but only if the bank and financial stocks are driven lower.

The financials run higher so the bulls are on easy street. XLF is at 21.97 well above the 21.83 bull-bear line in the sand so the living is easy for bulls. The algo is tracking financials and retail, XLF 21.83 and RTH 58.62, respectively. Bears need XLF under 21.83 or they got nothing. Bulls need RTH above 58.62 to send the SPX above 1900 and higher. If RTH remains under 58.62, the upside for equities is limited, however, strong selling will not enter markets unless XLF loses 21.83.

The algo is also showing interest in utilities which have not been on the radar for quite some time. For next week, UTIL 519.51 is very important. Generally, UTIL must remain above 520 here forward, otherwise, weakness will enter the broad markets.

For the SPX starting at 1892, on the last day of trading before the holiday (US markets will not reopen until Tuesday morning, 5/27/14), the bulls need to push up through 1896 and the 1897 resistance will be toast with price moving above 1900 attacking 1902 resistance all in quick order. The bears need to push under 1885 to accelerate the downside. A move through 1886-1895 is sideways action to end the week. 

5/25/14; 7:00 PM EST =

5/22/14; 9:44 AM EST = +64; signal line is +55; go long 1889; (Benchmark SPX for 2014 = +2.2%)(Keybot this trade = -0.5%; Keybot for 2014 = +2.4%)(Actual this trade = -1.1%; Actual for 2014 = -0.3%)

5/21/14; 9:36 AM EST = +64; signal line is +55 but algorithm remains short

5/20/14; 9:39 AM EST = +48; signal line is +55

5/19/14; 2:22 PM EST = +64; signal line is +54 but algorithm remains short

5/19/14; 2:12 PM EST = +48; signal line is +53

5/19/14; 1:42 PM EST = +34; signal line is +53

5/19/14; 12:38 PM EST = +48; signal line is +53

5/19/14; 12:18 PM EST = +64; signal line is +53 but algorithm remains short

5/18/14; 7:00 PM EST = +48; signal line is +52

5/16/14; 10:00 AM EST = +48; signal line is +52

5/16/14; 9:00 AM EST = +49; signal line is +53

5/15/14; 3:41 PM EST = +49; signal line is +53

5/15/14; 3:26 PM EST = +33; signal line is +53

5/15/14; 2:58 PM EST = +49; signal line is +54

5/15/14; 10:10 AM EST = +33; signal line is +54

5/15/14; 9:41 AM EST = +49; signal line is +55; go short 1880; (Benchmark SPX for 2014 = +1.7%)(Keybot this trade = +0.3%; Keybot for 2014 = +2.9%)(Actual this trade = +0.4%; Actual for 2014 = +0.8%)