STOCK MARKET BULLISH -- LONG -- CAUTION

Keybot the Quant is long to start the new trading week.  The opening bell is very important tomorrow. As previously mentioned, the NYA 40-week MA at 7750 is the most influential parameter dictating broad market direction right now.  If NYA, now with a 7759 handle, stays above 7750 and moves higher, the market bulls will remain in control and markets will foat higher. The standard Sunday print shows the algo number now under the signal line so the quant definitely wants to go short, but other programming rules must be honored to trigger the move, and the ducks are not in a row as yet. Make no mistake, this is a market inflection point from where the broad indexes will bounce, or die.

Other key parameters to watch include JJC 44.20 (now causing bearishness at 43.73) and XLF 14.46 (now causing bearishness at 14.38).  Thus, if the NYA loses 7750, the market bears will win and markets will tumble lower.  If the NYA stays above 7750, and either JJC or XLF recovers, the markets are heading higher.

For the SPX starting at 1363, the bears need less than one point lower, to lose the 1362 level, and a downside acceleration will occur. The overnight futures are important since any smidge of red will embolden the bears. If SPX 1362 fails, and the NYA loses 7750, Keybot will likely flip to the short side. A move thru 1363-1375 is sideways action for Monday and will result in market indecision.  The algo prints one pre-scheduled number this week on Friday morning. An exciting start to the week is on tap. NYA 7750, JJC 44.20, XLF 14.46 and SPX 1362 tell you everything you need to know for Monday's broad market direction.

7/29/12; 7:00 PM EST =

7/27/12; 10:00 AM EST =

7/22/12; 7:00 PM EST = +28 signal line is +29 but the algorithm says stay long

7/20/12; 9:45 AM EST = +28 signal line is +28 but the algorithm says stay long

Note Added 7/23/12 at 9:28 AM EST:  A turn appears imminent after the opening bell, S&P futures are off 20 points. Stay tuned.