STOCK MARKET BULLISH -- LONG -- CAUTION

Keybot the Quant is long moving into the Thursday session. Today will determine if the algo whipsaws back to the short side, or not. The market rally is tentative since the three key areas most influencing market direction right now are all dancing on their bull-bear lines in the sand; UTIL 480.81, XLF 19.20 and RTH 51.48. If all three parameters stay above these levels, the markets float higher. If any of the prices start to place upside distance away from the levels the markets will move strongly higher. If any one of the three lose the levels shown, the broad indexes will weaken again and drift lower. As a guesstimate, since you never know what the algo will do, if any two of the above three parameters turn bearish, and the SPX loses the 1592 level, Keybot will likely whipsaw back to the short side. Thus, the markets are tentative and continue along in a major tug-o-war struggle for control.

For the SPX starting at 1603, the bulls need to touch the 1607 handle and it will be off to the races higher with price pushing through 1609 R and on its way to test 1614 R. The bears must push under the 1592-1593 area which will accelerate the downside. A move through 1593-1606 is sideways action today. The bulls are driving the bus but markets remain shaky, erratic, unstable and indecisive.

6/30/13; 7:00 PM EST EOM EOQ2 EOH1 =

6/28/13; 10:00 AM EST =

6/26/13; 12:59 PM EST = +21; signal line is +1

6/26/13; 12:51 PM EST = +5; signal line is +2