STOCK MARKET BULLISH -- LONG -- CAUTION

Keybot the Quant remains long, idling along this week without printing any numbers thus far. This morning provided excitement with the RTH coming down to tap on the 41.08-ish, while the SPX punched under the 1308, both identified by the quant ahead of time, which resulted in a bounce. Thus, the markets are moving sideways. For tomorrow, Wednesday, the bears need to push the RTH from the current print at 41.51 down to 41.10, if so, the markets will take a large leg lower. If not, the bears got nothing. Retail Sales hit at 8:30 AM EST and will decide the fate of the RTH which in turn will decide the fate of the markets.

The bulls need to push the NYA from the current print at 7558 up thru 7658 (40-week MA), exactly 100 points, to ignite a large bull rally. If not, the bulls got nothing.  If the RTH remains above 41.10, and the NYA remains below 7658, neither side wants the ball and the broad indexes will continue along sideways. For the SPX starting at 1324, the bulls only need to see the slightest hint of green in the futures and the markets will accelerate higher at the opening bell. The PPI and Retail Sales data will be key in the morning.  Any print above 1324 will carry the markets higher.  The bears need to push the SPX all the way back down to those 1307-ish lows from today to reignite the strong bearishness. If the SPX drops under 1307, the 1300 level will come quickly. The markets are moving in a sideways range for several days between 1307-1326 so watch these levels to see which side price exits.  A move thru 1308-1323 is sideways action. If the RTH fails, and the SPX moves down towards 1307, the quant will be very close to flipping short. Otherwise, the bulls are driving the bus.

6/17/12; 7:00 PM EST =

6/15/12; 10:00 AM EST =

6/10/12; 7:00 PM EST = -14 signal line -23