STOCK MARKET BULLISH -- LONG -- CAUTION

Keybot the Quant remains long thru the Thanksgiving Day holiday. Markets are closed in the States today and tomorrow's session will close early at 1:00 PM EST. The algo printed two more numbers yesterday.  XLF 15.62 and SPX 1391 told the story yesterday, only the markets are sitting on the fence unable to fully commit to one side or the other. Make no mistake, however, the bulls are running. The XLF moved above 15.62, only by pennies, but above nonetheless and this contributes to bullishness in the markets. The SPX 1391 resistance, if it gives way, would send price to 1400+ but the bulls could not punch up thru yesterday.  With the XLF above 15.62, the SPX should continue higher.

The quant is tracking four key parameters; VIX 15.95 (now 15.31 contributing bullishly to markets), XLF 15.62 (now 15.65 contributing bullishly to markets), RTH 43.92 (now 44.25 contributing bullishly to markets) and JJC 44.85 (now 44.21 contributing bearishly to markets). Any change to any of the four will send markets in that respective direction. The bulls need to push copper, JJC, above 44.85, which will guarantee the SPX well up and over 1400. The bears need to send the XLF immediately under 15.62 to stop the upside market momo.

For the SPX for Friday, the shortened session, starting at 1391, key S/R, the bulls only need to see a smidge of green in the futures overnight and this will launch an upside run into the mid 1390's and opening the door to a test of 1403 in the coming days. The bears will try to keep the futures negative overnight to prevent the upside market acceleration from occurring. In addition, the bears will try to push the SPX five points lower, under 1386, to accelerate the downside for the broad indexes, and return the momo to the bear side.  A move thru 1387-1391 is sideways action for Friday.

11/25/12; 7:00 PM EST =

11/21/12; 12:38 PM EST = +3; signal line is -33

11/21/12; 10:31 AM EST = -13; signal line is -34

11/21/12; 10:00 AM EST = +3; signal line is -34