STOCK MARKET BULLISH -- LONG -- CAUTION

Keybot the Quant remains long moving into the new week of trading. Copper, JJC, will immediately dictate broad market direction at the opening bell. Watch JJC 41.93. Price is now at 41.94 one penny on the bull side which creates market buoyancy. Bulls win if JJC moves up; bears win if JJC moves down. The algo is also tracking volatility with interest. VIX 13.70 is the bull-bear line in the sand. The VIX is 12.59, collapsing late Friday which created the big thrust higher for markets, so the bulls are cruising along without a care or worry (volatility and the SPX move inversely). Bulls win with VIX under 13.70; bears win with VIX above 13.70. Keybot is also tracking commodities currently. Watch GTX 4810, now at 4718 creating market negativity. Bulls are trying to push the GTX above 4810 to receive upside market fuel.

For the SPX starting at 1634, the bulls have the easy road, only needing to see a smidge of green in the overnight futures and tomorrow the trek to 1640 begins. The bears need to push under 1624 to accelerate a move lower to 1618 in quick order.  A move through 1625-1633 is sideways action. Markets are unstable and erratic as evidenced by the wild multi-handle swings late last week. Remain cautious. If JJC drops under 41.93, VIX moves above 13.70 and SPX drops under 1624, it is very likely that Keybot the Quant will flip short. The bulls maintain control of the markets if the VIX stays under 13.70. Keybot prints two pre-scheduled numbers this week; one on Thursday and the other on Friday.

5/19/13; 7:00 PM EST =

5/17/13; 10:00 AM EST =

5/16/13; 9:00 AM EST =

5/12/13; 7:00 PM EST = +62; signal line is +36

5/10/13; 3:54 PM EST = +62; signal line is +34