STOCK MARKET BEARISH -- SHORT -- CAUTION

Keybot the Quant remains short as the bulls stage a strong comeback fueled by the Fed's easy money dovish talk. The algo prints three numbers today. Financials lead the way higher and the fix was in before the Fed statement with the XLF above 23.96. The algo number is a hair away from overcoming the signal line which would position Keybot to go long (if other internal programming rules latch properly) but for now the bears remain in control.

For Thursday, the fight is between the NYA Index and financials. Bulls need the NYA above 10755 to prove they can sustain the rally. Bears need to push XLF under 23.96 or they got nothing. Stocks will move sideways with an upward bias if NYA remains under 10755 and XLF over 23.96. If the NYA moves above 10755 and the SPX moves above 2017, Keybot will likely flip long, hence, the caution flag is out and if NYA turns bullish (above 10755) an imminent turn to the long side will be at hand.

For the SPX for Thursday starting at 2013, the bulls need to move above 2017 to create an acceleration higher. The bears need to push under 1974 to accelerate the downside. A move through 1975-2012 is sideways action. Watch NYA 10755 and XLF 23.96.

12/21/14; 7:00 PM EST =

12/17/14; 1:02 PM EST = +32; signal line is +34

12/17/14; 12:45 PM EST = +16; signal line is +34

12/17/14; 12:02 PM EST = +32; signal line is +36

12/16/14; 2:56 PM EST = +16; signal line is +36