STOCK MARKET BULLISH -- LONG -- CAUTION

Keybot the Quant is long going into a new week of trading beginning on Tuesday morning. U.S. markets are closed Monday for the Labor Day holiday. The signal line continues to move higher which positions the model for a potential shift to the bear side. Keybot has been on the bull side for the last month. The quant is fixated on several key items. Watch copper, JJC 43.70, now four pennies above at 43.74 which causes broad market buoyancy. The Monday trading shows copper moving higher on continued hopes of global stimulus measures coming.

Watch utilities, UTIL 467.35, now 468.21 causing market buoyancy. The algo is also tracking semiconductors with interest. Watch SOX 391, now at 396. Also watch VIX 18.35, now at 17.47 effecting markets positively (volatilty moves inversely to the equity markets). Very simply, since JJC and UTIL are the key focal points to start the week, if JJC and UTIL stay above the levels listed, the bulls are happy campers and the broad markets continue floating higher. If JJC or UTIL, or any parameter, violates the levels listed, the broad market selling will be noticeable, if any two violate their levels, with JJC and UTIL currently the most likely candidates, the algo may flip to the short side. Depending on how the week progresses, only one parameter violating the levels shown may cause Keybot to move to the short side.

For the SPX for Tuesday, starting at 1407, the bulls need to move up thru 1413 to accelerate the upside to 1419 while the bears need to push under 1399 to accelerate the downside towards 1391. The SPX has moved thru the sideways 1399-1413 channel range for the last eight days so the move from this range is very important. A move thru 1400-1412 is sideways action for Tuesday. The quant prints one pre-scheduled number this week on Friday morning. An active week is anticipated for the algo. Stay alert for a potential market turn this week. For now, the bulls continue driving the bus.

9/9/12; 7:00 PM EST =

9/7/12; 9:00 AM EST =

9/2/12; 7:00 PM EST EOM = +76; signal line is +61

8/31/12; 1:51 PM EST = +76; signal line is +59