STOCK MARKET BULLISH -- LONG -- CAUTION -- TURN MAY BE IMMINENT

Keybot the Quant is long moving into the Monday session but, as evidenced by the algo number under the signal line, wants to go short. The internal programming rules have not yet lined up properly to trigger the move to the short side. One of the major parameters the bears need is the SPX dropping under 1701 in Monday trading. Thus, if JJC stays under 39.02, and the SPX drops under 1701, and stays under 1701, Keybot will likely flip to the bear side. If copper is bullish overnight and JJC moves above 39.02, the market bulls are fine and will have an easy Monday ahead. VIX 14.25 remains a key level the bears need to initiate significant market selling.  GTX 4790 is also important and will add bear fuel if it fails.

For the SPX starting at 1710, closing at the highs on Friday, the bulls only need a tiny smidge of green showing in the overnight futures and it is off to the races higher once again with the SPX moving up into the mid 1710's on its way to a print above 1720 moving forward. The bears must push under 1701 to begin a downside acceleration into the 1690's. A move through 1702-1709 is sideways action for Monday. The algo does not print any pre-scheduled numbers this week. The broad indexes remain very erratic and unstable. JJC 39.02, SPX 1710 and 1701 will tell the market story.

8/11/13; 7:00 PM EST =

8/4/13; 7:00 PM EST = +49; signal line is +50 but algorithm says stay long