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

Keybot the Quant remains long after a bear trap occurs yesterday with early negativity followed by a sharp and quick reversal to the upside. Keybot wants to flip to the short side but internal programming rules will not yet allow the move. Financials are key. Watch XLF 21.82. Bulls are creating market upside with XLF at 21.90 eight pennies above the bull-bear line in the sand. Bulls need either RTH 58.83 and/or JJC 37.48 which would pave the way to SPX 1900. However, if the bulls cannot achieve at least one of these two goals (retail and copper, respectively), the bulls got nothing and the equity markets will stall and hit a ceiling.

Bears need the XLF under 21.82. GTX 4940 and VIX 14.60 will also create market negativity. Keybot will likely flip short if the SPX drops under 1867 today, a formidable task that is about 18-handles lower. Instead, bears may be content to wait another day and focus on keeping the retail sector and copper lower to stall the upside. The bulls need only one positive point, to push up through 1885.50 and an upside acceleration will occur tagging the 1891 resistance in quick order. A move through 1868-1885 is sideways action. S&P futures are flat a couple hours before the opening bell.

5/11/14; 7:00 PM EST =

5/5/14; 10:14 AM EST = +49; signal line is +50 but algorithm remains long