STOCK MARKET BULLISH -- LONG -- CAUTION

Keybot the Quant is long to begin the week. The bulls are running and most indications in the algo's program are firmly in the elevated bull camp, some at such lofty levels they cannot move any more higher. Sunday's pre-scheduled number results in no changes but the algo number is only thirteen points above the signal line indicating that a suprise to the downside could occur at any time. For now, however, the bulls are driving the bus.

Watch UTIL 464.31 this week, this number stays as is the whole week long until Friday at 4 PM EST, and all next week, when the quant will be watching 478.48 (fourteen points higher). Therefore, the bulls will hang on this week staying above 464.31, but, as Friday approaches, you must see the utilities climbling strongly higher to at least be near 478 by the weekly close, or the markets are in big trouble.  Of course, if UTIL falls under 464.31 at anytime this week the markets are in serious trouble. Semiconductors are also of import to the quant currently, now tracking SOX 392 and the semi's are far above this level to start the week.

For the SPX starting at 1438, the bulls only need to see a tiny smidge of green to continue an upside acceleration. The SPX will llikely punch thru the 1440 intraday high from 2008 and attempt a gap fill at 1446 next. Watch the futures overnight tonight since any positive numbers indicate that the market bears are going to receive another beating. If the bears can keep the futures red, they will attempt to push the SPX under 1431.50, if so, a downside acceleration will occur to quickly test lower support at 1427. A move thru 1432-1437 is sideways action for Monday.  Keybot prints one pre-scheduled number this week on Friday morning. Extreme caution is warranted. Stay on guard and do not take the upside for granted or become complacent. The broad indexes are erratic and unstable; expect the unexpected.

9/16/12; 7:00 PM EST =

9/14/12; 10:00 AM EST =

9/9/12; 7:00 PM EST = +76; signal line is +63

9/7/12; 9:00 AM EST = +76; signal line is +63