STOCK MARKET BULLISH -- LONG -- CAUTION

Keybot the Quant is long. The bulls keep moving the SPX higher.  The algorithm is most interested in commodities right now, the CRB 313 level. The bulls are keeping the CRB about three points above which allows them to maintain broad market buoyancy.  The key is the dollar since CRB will move up on the weaker dollar favoring bulls, or the dollar will move higher which will drive the CRB lower, and perhaps under 313, that would begin market trouble.

For the SPX for Friday's trade, starting at 1403, the bulls only need to see green futures overnight and tomorrow will be another bull run into the weekend. Overhead resistance is 1406, 1407, 1409 and 1413.  The market bears need to keep the overnight futures red at all costs to stop the upside market momo.  If the futures are red in the morning, then the bears must push the SPX under 1393 which would accelerate market negativity.  The SPX will likely fall down thru 1391 support and then test 1389 or 1386 support.  A move thru 1394-1402 is sideways action.

Keybot prints a pre-scheduled number at 10 AM so the market action can be assessed at that time. 10 AM is expected ot be a market pivot point. Large volume at the open, and at the close, would be expected due to the Quadruple Witching OpEx so do not mistake this as confirmation by the markets in favor of any bull or bear move. Stay alert, the equities markets remain unstable. The caution flag remains out since a move of CRB under 313 and SPX under 1393 would likely result in the quant flipping to the short side.

3/18/12; 7:00 PM EST =

3/16/12; 10:00 AM EST =

3/11/12; 7:00 PM EST = +76; signal line is +67

3/9/12; 9:00 AM EST = +76; signal line is +66

3/8/12; 12:04 PM EST = +76; signal line is +66; go long 1364; (Benchmark SPX for 2012  = +8.4%)(Keybot this trade = -1.6%; Keybot for 2012 = +3.1%)(Actual this trade = -1.6%; Actual for 2012 = +5.8%)