STOCK MARKET BULLISH -- LONG -- CAUTION

Keybot the Quant remains long as the SPX prints new all-time highs today. GTX fell under 4888 to help the bears but the drastic drop in the VIX, now down to 13.48, well under the 14.94 bull-bear line in the sand, provided the upside rocket fuel today. Copper is weak but not weak enough to join the bear camp. Utilities UTIL jumps to 495. Remember, the UTIL 498 level is key for each day next week, so at 4 PM tomorrow, to end this week, monitor the final UTIL print. If UTIL ends this week above 498, the bulls are going to take equities higher early next week. The market bears must send UTIL lower tomorrow back into the 480's and lower, otherwise, further whippings will continue.

Friday will be a battle of copper and commodities. If GTX (commodities) moves above 4888, more bull fuel is provided and the SPX contnues higher. If JJC (copper) drops under 40.19, the bears send the SPX lower. If JJC drops under 40.19, and the SPX drops under 1714, a formidable task but not impossible, Keybot will likely flip to the short side. For the SPX, starting at the new all-time highs at 1733, the bulls only need to see a smidge of green in the futures and the high 1730's, perhaps a touch of 1740, are on the way in quick order. The bears will try to keep the futures negative and at the same time make sure copper and commodities head lower (higher dollar). If SPX drops under 1714, the downside will accelerate to 1710, 1708 and perhaps 1706 in short order. A move through 1715-1733 is sideways action to end the week. Watch GTX 4888, JJC 40.19, UTIL 498 and VIX 14.94 to determine market direction. The bulls are in control.

10/20/13; 7:00 PM EST =

10/17/13; 10:06 AM EST = +64; signal line is +50

10/17/13; 9:00 AM EST = +78; signal line is +48

10/16/13; 3:48 PM EST = +78; signal line is +46