STOCK MARKET BULLISH -- LONG -- CAUTION

Keybot the Quant is on the long side now from SPX 1146. The algo is always susceptible to a whipsaw after turning so stay on guard today and tomorrow to see if the long side holds. The key is the utes today. Very simply, if the 50 week MA holds for UTIL, any sell off this morning will be a non-event and the bulls should continue the rally. UTIL is now 423.21, nine points above the 50 week MA at 414.58, so watch this after the bell rings.

For the SPX today, the bulls have the wind at their back since the indexes closed at the highs yesterday. Even a penny on the green side with futures will catapult the indexes higher by several handles today. But, alas, at this writing, the futures are down about 8 or 9 for the spoo's. The bears have a formidable task ahead today, needing to retrace the entire run yesterday down to SPX 1123 if they want to get the negativity ball rolling again. A move thru 1124-1161 today is sideways stuff, a rest period after yesterday's huge run-up.

9/4/11; 7:00 PM EST =

9/2/11; 9:00 AM EST =

8/31/11; 7:00 PM EST EOM =

8/30/11; 10:00 AM EST =

8/28/11; 7:00 PM EST =

8/26/11; 10:00 AM EST =

8/23/11; 11:51 AM EST = -72; signal line is -77; go long 1146; (Benchmark SPX for 2011=-8.9%)(Keybot this trade=+13.4%; Keybot for 2011=+21.2%)(Actual this trade via SDS=+25.6%; Actual for 2011=+28.4%)

8/23/11; 10:02 AM EST = -72; signal line is -78 but algorithm says stay short