STOCK MARKET BULLISH -- LONG -- CAUTION

Keybot the Quant joined the long side this morning, as the NYA moved back above the 40 week MA, and the retail sector added extra fuel for the indexes. The algorithm idled along unchanged after the 10:30 AM number.

For tomorrow, focus on the retail sector again, after the open, if RTH, now at 107.51, falls under 107.29, the market bears will be pushing back.  If the RTH remains above 107.29, the market bulls will keep on rockin'.

For the SPX for tomorrow, at this juncture, the market bulls have the wind at their back since the indexes closed near their highs.  Any positive move in futures will lead to the markets continuing the melt-up; attacking resistance at 1300 then 1307.  For the market bears to push back, they must start with lower futures, any number lower, as long as the futures are red, even by pennies. As the day plays out, the market bears would need to touch a 1280 handle to get the negativity rolling along again.  Between 1282 and 1296 is sideways slop.

Of course the Europe/Greece vote overnight carries a lot of weight, so you have to wait until 5 AM EST to find out the results and the affects on the futures.  The run-up today was low volume stuff and feels overdone but time will tell.  Seasonality says Thursday and Friday should be buoyant and bull-friendly, so factor this in as tomorrow plays out into Thursday morning.  Markets remain unstable. Caution is warranted. Get a good nights sleep and set the alarm clock for 5 AM.

7/31/11; 7:00 PM EST EOM =

7/29/11; 10:00 AM EST =

7/26/11; 10:00 AM EST =

7/24/11; 7:00 PM EST =

7/19/11; 9:00 AM EST =

7/17/11; 7:00 PM EST =

7/15/11; 10:00 AM EST =

7/10/11; 7:00 PM EST =

7/8/11; 9:00 AM EST =

7/3/11; 7:00 PM EST =

7/1/11; 10:00 AM EST =

6/30/11; 7:00 PM EST EOM EOQ2 EOH1=

6/28/11; 10:30 AM EST = -12

6/28/11; 10:00 AM EST = -28; signal line is -30

6/28/11; 9:36 AM EST = -28; signal line is -30; go long 1285; (Benchmark SPX for 2011=+2.2%)(Keybot this trade=-0.6%; Keybot for 2011=+4.8%)(Actual this trade via DOG=-0.8%; Actual for 2011=-0.9%)