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

Keybot the Quant flips long at yesterday's opening bell as the new trading week begins with a wild start. UK polls favor the Bremain camp over the Brexit camp for the referendum vote on Thursday creating a huge ramp higher in US futures and European stocks on Monday. Keybot flips long at SPX 2098. Markets are trading very erratically and as the Monday session played out, stocks rolled over to the downside and the algo is champing at the bit to whipsaw back to the short side. If the SPX drops under 2075 today, Keybot will likely flip short.

The algo is tracking four key market parameters currently controlling stock market direction; retail, banks, volatility and copper. Watch RTH 76.06, XLF 22.93, VIX 16.20 and JJC 24.12. All four are bearish so the bulls need to switch these parameters across the levels shown to create market upside. The power of any rally will be determined by how many of these four parameters turn bullish. Remember, the VIX moves inverse to stocks so the bulls need the VIX to drop under 16.20.

Retail stocks and financials were the key yesterday and remain the key focus today. The RTH 76.06 and XLF 22.93 will tell you a lot about the stock market direction ahead.

For the SPX starting at 2083 for Tuesday, the bulls need to touch the 2101 handle to accelerate the upside. The bears need to push under 2076 to accelerate the downside. A move through 2077-2100 is sideways action.

On the last trade, the Keybot the Quant algorithm computer program loses -0.7% and the actual trading is flat. The QID is dead flat during the last trade. The SPX benchmark index is up +2.6% so far this year. Keybot exited QID and entered SSO remaining in the 2x ETF's. The bulls have the ball but the bears want it back right away with the algo number 26 points under the signal line. S&P futures about 2-1/2 hours before the opening bell indicate that the SPX may gain about 10 points to begin the day.

6/26/16; 7:00 PM EST =

6/24/16; 10:00 AM EST =

6/20/16; 3:56 PM EST = +34; signal line is +60 but algorithm remains long

6/20/16; 11:48 AM EST = +50; signal line is +61 but algorithm remains long

6/20/16; 9:40 AM EST = +66; signal line is +61; go long 2098; (Benchmark SPX for 2016 = +2.6%)(Keybot algo this trade = -0.7%; Keybot algo for 2016 = +7.7%)(Actual results this trade = -0.1%; Actual results for 2016 = +15.2%)

6/20/16; 9:36 AM EST = +66; signal line is +60 but algorithm remains short

6/19/16; 7:00 PM EST = +34; signal line is +60

6/17/16; 9:00 AM EST = +34; signal line is +61

6/14/16; 9:36 AM EST = +34; signal line is +62

6/13/16; 3:26 PM EST = +50; signal line is +63

6/13/16; 3:17 PM EST = +34; signal line is +63

6/13/16; 3:11 PM EST = +50; signal line is +63; go short 2084; (Benchmark SPX for 2016 = +2.0%)(Keybot algo this trade = +1.5%; Keybot algo for 2016 = +8.4%)(Actual results this trade = +3.0%; Actual results for 2016 = +15.3%)