STOCK MARKET BULLISH -- LONG -- CAUTION

Keybot the Quant remains long as the pre-scheduled number prints a few minutes ago, resulting in no change to the algo number or the signal line.  The quant appears most interested in volatility, financials and semiconductors.  VIX starts at 19.55; watch the 19.00 level, if it fails, the bulls will enjoy market buoyancy. The bears need to keep the VIX elevated above 19.00.  For financials, GS reported earnings that look good, but the markets are luke warm towards the stock. This action will impact the XLF now at 15.24.  If XLF drops under 15.09, the bears will drive markets lower.  The bulls need to keep XLF above 15.09.

For semiconductors, SOX, now at 416.70 in the bear camp, watch to see if the 421.50 level is taken out since this will provide bull fuel.  The bears need to keep SOX under 421.50. For the SPX today, starting at 1370, the bears need to push the index under 1366 to accelerate the downside selling but the futures say the bulls will run instead.  The market bulls need to push above 1379.50, if so, the bulls will accelerate a much stronger upside move in quick order.  The futures project a 6 handle upside move so at 1370+6 = 1376 this would not be high enough for bulls to break out party hats. A move thru 1367-1378 is sideways action today. Pay attention to VIX, XLF and SOX when the bell rings.

4/22/12; 7:00 PM EST =

4/17/12; 9:00 AM EST = +16; signal line is +8

4/16/12; 9:57 AM EST = +16; signal line is +8

4/16/12; 9:30 AM EST = +30; signal line is +8