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

Keybot the Quant remains long but considering today is the Fed taper announcement day, anything can happen. The SPX kept bumping up against the 1705 level yesterday but could not remain above. For today, starting at 1705, the bulls only need less than one-point higher, to 1705.50, and the upside will accelerate a few handles, the 1707 gap will be filled, and the 1710 all-time closing and intraday top will be quickly tested. The bears need to push under 1698 to accelerate the downside. A move through 1699-1705 is sideways action.

The algo is tracking four areas of interest; commodities GTX 4888, volatility VIX 14.64, copper JJC 39.90 and utilities UTIL 483.35. Bulls need higher commodities, copper and/or utilities to continue the upside party into the SPX 1720's. Bears need to push volatility above VIX 14.64 to firmly lock in broad market selling. If all four parameters remain in their bull and bear camps all day, the markets will simply float sideways. Keybot prints a pre-scheduled number this morning and GTX may provide action early in the day. Copper is up about 0.4% in early trading this morning which would send JJC up into the 39.60's remaining short of the bull-bear line at 39.90. The algo number is now only 12 points away from the signal line. If the VIX moves above 14.64, and the SPX drops under 1698, it is likely that Keybot would flip to the short side. Therefore, the caution and imminent turn notations are added to the title line above. Today is a big day for markets.

9/22/13; 7:00 PM EST =

9/18/13; 9:00 AM EST =

9/17/13; 11:15 AM EST = +17; signal line is +5

9/15/13; 7:00 PM EST = +31; signal line is +3