STOCK MARKET BULLISH -- LONG -- CAUTION

Keybot the Quant remains long as the market roller coaster ride continues. After lunch time on Tuesday, the VIX fell under 13.76 creating the happy finish to the session. The bulls are back in rally mode with the lower volatility. Interestingly, financials are flat. Bulls are set to send stocks higher unless the bears can push either VIX above 13.76 (now at 13.44 creating market bullishness) and/or XLF below 24.82 (now at 25.04 creating market bullishness). If either parameter turns bearish consider the 'imminent turn' notation to be in the title line as stocks drop.

For the SPX starting at 2093, the bulls need to touch the 2096 handle and bingo, price will move above 2100 in quick order. S&P futures are +5 about four hours in front of the opening bell so the bulls are gunning for victory. The bears need to push under 2070 to accelerate the downside, a formidable task, so instead bears will focus on pushing volatility higher and financials lower. A move through SPX 2071-2095 is sideways action. Markets may trade erratically this afternoon after the FOMC decision at 2 PM EST (7 PM London; 3 AM Thursday morning Tokyo).

7/31/15; 10:00 AM EST =

7/28/15; 1:08 PM EST = +3; signal line is -12

7/28/15; 10:00 AM EST = -11; signal line is -14

7/27/15; 9:36 AM EST = -6; signal line is -15