STOCK MARKET BULLISH -- LONG -- CAUTION

Keybot the Quant is long ahead of the final trading day of the week.  The utilties sector failed yesterday dragging the broad indexes lower.  For today, watch UTIL 472, the same number all week long. The UTIL number of interest, however, changes for next week and becomes 464.16, so in the final hour of trading today watch to see if UTIL closes above or below 464. If UTIL closes under 464 at 4 PM EST today, this will continue causing broad market negativity thru next week. However, if UTIL closes above 464 at 4 PM, then starting Monday, the utes will be back on the bull side contributing positively to the markets next week. The quant is now tracking utilities, copper, semi's, and the NYA as the major influences on broad market movement for today.

Watch JJC 43.61, now at 44.03, contributing positivity to markets. If 43.61 fails today, that will create a negative market influence and Keybot will likely flip to the short side.  Watch SOX 389, now at 396.66, contributing bullishly to the markets. If 389 fails, the broad indexes will sell off strongly.  Similarly, watch NYA 7808, now at 8011, contributing positively to markets. Should 7808 fail, the broad indexes will sell off strongly.

For the SPX today, starting at 1402, the market bears only need one and one-half points lower, to drop thru 1401.50, to start a downward acceleration thru the 1399 support and toward the low to mid 1390's. The bulls need to retrace yesterday's sell off to get their mojo back, and push up over 1413, a formidable task, but not impossible.  A move thru 1402-1412 is sideways action.

Note: Keybot will likely not be updated unitl later on today or this evening so you will have to use the tools above to see if the quant flips to the short side today, or not. In a nutshell, as described above, UTIL is in the bear camp dragging markets lower but JJC, SOX and NYA are in the bull camp creating market positivity. If JJC, SOX and/or NYA, any one of them, falls under the levels listed, while UTIL remains under 472, Keybot will likely flip to the short side. The SPX 1400.50 level would need to be breached as well.

If UTIL stays in the bear camp, and JJC, SOX and NYA stay in the bull camp, markets will move sideways today with no great shakes.  If UTIL moves above 472, that will immediately tell you that the bulls are staying in control and the quant remaining long is the correct call. Remember, in the final minutes of trading today, watch UTIL 464 since that will impact markets for the opening bell on Monday morning. Markets remain extremely unstable. Copper is lower in early trading, down 0.6% as this message is written five hours before the U.S. opening bell. Applying this to JJC, points to a a print in the 43.70's after the open, near the critical 43.61, so watch copper closely today.

8/26/12; 7:00 PM EST =

8/23/12; 10:52 AM EST = +60; signal line is +48

8/21/12; 3:44 PM EST = +76; signal line is +48