STOCK MARKET BULLISH -- LONG -- CAUTION

Keybot the Quant remains long and did not print any numbers yesterday during the Fed circus. The algo number remains only two ticks from the signal line indicating an ongoing bull-bear struggle but the bulls clearly slapped the bears in the face. The retail sector exploded higher while volatility has collapsed. The VIX drops to a 7-1/2 year low at 10.61. Everyone is long and no one wants to short the market.

The bulls have one fly in the ointment as identified by Keybot--copper. The bulls need higher copper to prove that the upside is the preferred direction forward. Watch JJC 37.60 (now at 37.37 in the bear camp causing market negativity). If JJC moves above 37.60, the SPX is likely heading to 1980. Copper is the key market directional driver currently. Basically, as copper goes, so goes the market. Copper is slightly weaker in early trading.

For the SPX starting at a new all-time high at 1957, the bulls need to touch the 1958 handle, only one-point higher, and another upside acceleration of several points will occur. The bears need to push under 1940 to accelerate the downside. A move through 1941-1957 is sideways action for Thursday. Copper tells the story. Watch JJC 37.60. The bulls are cruising and copper will dictate whether the party continues, or not.

6/22/14; 7:00 PM EST =

6/17/14; 9:00 AM EST = +63; signal line is +61