STOCK MARKET BULLISH -- LONG -- CAUTION

Keybot the Quant remains long through the Independence Day holiday today. The bulls push commodities, GTX, above 4735 which creates upside market buoyancy. In addition to GTX 4735, the algo is tracking UTIL 480.75 (utilities) and JJC 39.75 (copper). UTIL and JJC are creating market negativity so the bulls need to push one or both of these parameters above the levels shown and the broad indexes will continue higher with the SPX up into the high 1620's moving higher. The bears need to keep UTIL and JJC negative while pulling GTX back under 4735 and the broad indexes will sell off.

For the SPX, starting Friday morning at 1615, the bulls need to touch the 1619 handle which will result in an upside acceleration to test 1626-1627 resistance. The bears need to push under 1605 to accelerate the downside to test 1598-1600 support, then 1593. A move through 1606-1618 is sideways action for Friday, however, considering that the U.S. will need to react to the BOE and ECB decisions, as well as the Monthly Jobs Report, a strong move either into the high 1620's, or low 1600's is likely. GTX 4735, UTIL 480.75 and JJC 39.75 will dictate the market direction. Markets remain erratic, unstable and indecisive. For now, the bulls continue to drive the bus.  The imminent turn notation is removed from the title line although continued caution is required in these volatile markets and especially at the Friday opening bell. Happy Independence Day.

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

7/5/13; 9:00 AM EST =

7/3/13; 9:30 AM EST = +19; signal line is -4

7/2/13; 1:38 PM EST = +5; signal line is -3