STOCK MARKET BULLISH -- LONG -- CAUTION

Keybot the Quant is long to start the new trading week. The Greece election drama will obviously dictate market behavior so watch the Sunday evening futures markets tonight for an early read.  As mentioned in the prior message, the NYA moving above the 40-week MA is a very big and bullish deal. The problem is that it occurred in the last few minutes of trading with a short-covering rally ahead of the Greece vote, not yet inspiring complete confidence. Thus, Monday will tell the true tale with the NYA which will dramatically affect markets moving forward.  If the NYA stays above 7660, the market bulls will continue a strong rally upward and onward moving forward. If the NYA drops under 7660, the bears will reignite market negativity.

Continue monitoring RTH 41.10 if the markets surprise to the downside. For markets to continue upwards, the financials must cooperate next.  Watch XLF 14.43, now at 14.34, only nine pennies away from launching another large leg higher for the broad markets. Of course the bears will try to prevent XLF 14.43 with all their might.

For the SPX starting at 1343, the market bulls only need to see a smidge of green in the futures overnight tonight and the broad indexes will launch on Monday. The bears must prevent this from occurring, but, of course it all hinges on Greece. A move thru SPX 1330-1343 is sideways action for Monday. The high volatility is causing wild market spikes. Late last week Keybot was on the verge of flipping back to the short side but now the bulls are continuing to run strong. Expect more erratic market action. Keybot prints only one pre-scheduled number this week at 9 AM Tuesday morning.  In a nutshell, NYA 7660, XLF 14.43 and SPX 1343 will tell the story for Monday's trade. Stay cautious. It's all in Greece's hands.

6/24/12; 7:00 PM EST =

6/19/12; 9:00 AM EST =

6/17/12; 7:00 PM EST = +0 signal line -21

6/15/12; 3:55 PM EST = +0 signal line -22

Note Added 6/18/12 at 4:39 AM EST:  The Greece elections voted pro euro and pro bailout. The S&P futures bounced ten points but as of about one-half hour ago dipped negative. At this writing the futures are now down 6 points, thus, a 16-point swing to the bear side occurs after the initial pop from the election.