STOCK MARKET BULLISH -- LONG -- CAUTION

Keybot the Quant remains long but the caution flag is waving.  JJC and SOX failed the levels highlighted this morning creating market bearishness. NYA remains elevated, however.  The quant is now tracking VIX closely as well. Watch VIX 18.75, now at 18, in the bull camp. If VIX moves above 18.75, the markets will sell off strongly. The SPX tested the 1364 support highlighted in this morning's missive and bounced.  Look for another test.

7/8/12; 7:00 PM EST =

7/6/12; 9:00 AM EST =

7/5/12; 9:57 AM EST = +30; signal line is +22

7/5/12; 9:30 AM EST = +46; signal line is +21

7/3/12; 9:30 AM EST = +62; signal line is +20