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

Keybot the Quant remains long through yesterday's drama. VIX 13.16, XLF 22.46 and RTH 59.34 all remain bullish so the markets recovered from the selling pressure. The bears could not develop any downside juice although the VIX was above 13.16 for a few minutes and the XLF touched the 22.46 for an instant. Therefore, the VIX is most likely to be first in indicating downside selling ahead, then the XLF then the RTH. So bears got nothing unless they achieve one of the three targets listed. If one of the parameters turn bearish, and the SPX drops under 1953, Keybot will likely flip short, hence, the imminent turn notation remains in the title line.

For the SPX starting at 1965, the bulls need to touch the 1970 handle and a big upside party will result. S&P futures currently point to a +3 point pop at the open. The bears need to push under 1953 to accelerate the downside. A move through 1954-1969 is sideways action to end the week. The bulls continue driving the bus.

7/13/14; 7:00 PM EST =

7/7/14; 10:53 AM EST = +67; signal line is +63