STOCK MARKET BULLISH -- LONG -- CAUTION

Keybot the Quant is long as the new week of trading is set to begin.  Last week began with the markets tumbling to the bear side on Monday but then catapulting higher to the bull side later in the week. The bulls need copper to cooperate for the markets to continue higher. Copper not yet participating places the entire rally in question.  Watch JJC 44.20, now creating market negativity at 43.47. If the bulls push JJC up over 44.20, the SPX is on its way over 1400.  The market bears must prevent JJC 44.20 with all their might.

The algorithm is focused on several other areas currently. Watch CRB 293, now at 299, since copper and commodities move together, along with the euro, and opposite the dollar. Thus, a higher dollar favors the bears and will push JJC and CRB lower.  A lower dollar will favor the market bulls and push JJC, CRB and the broad indexes higher.  The NYA breaking up and thru the 40-week MA at 7760 is a major bullish development. The bulls are in control of the markets if the NYA, now at 7912, remains above 7760.  Watch the financials, XLF 14.45, now affecting markets positively at 14.76 and semiconductors, SOX 375.30, now affecting the markets positively at 384.23. Copper, the JJC, however, is the key to the markets moving forward.

For the SPX for Monday starting at 1386, the bulls only need three points, to push up thru 1389, and the wild upside acceleration orgy will continue. SPX 1391 is very strong resistance but it would likely fold like a cheap suit with the SPX heading towards 1400 plus.  The bears are trying to stop the upside momo by keeping JJC down and pushing the CRB, NYA, XLF and SOX lower.  Bears need to drop under the strong SPX 1366 support level to restart any market negativity. A move thru 1367-1388 in Monday's trade should  be considered sideways action.  The bulls are driving the bus and need copper to cooperate to seal the deal. Extreme caution is required despite the algo number sitting 34 points above the signal line since the markets remain erratic and unstable. Watch the overnight futures tonight to see if there are three or more green points, if so, the bulls plan on running towards 1400, if not, the bears will breathe a tiny sigh of relief. Keybot prints three pre-scheduled numbers this week; two on Tuesday and one on Friday morning.

8/5/12; 7:00 PM EST =

8/3/12; 9:00 AM EST =

7/31/12; 7:00 PM EST EOM =

7/31/12; 10:00 AM EST =

7/29/12; 7:00 PM EST = +60; signal line is +26

7/27/12; 10:00 AM EST = +60; signal line is +26