STOCK MARKET BULLISH -- LONG -- CAUTION

Keybot the Quant whipsaws back to the long side at 3:51 PM at SPX 1409, another late day trend change right before the closing bell.  The semi's, financials and volatility all flipped into the bull camp and the markets never looked back; the SPX tagged 1409 in the closing minutes. That was a wild day of market action. Keybot printed 13 numbers today including the change to the long side. The last trade results in a minor loss. The quant closed out SDS and opened up a trade in SPY. The double ETF's are now abandoned for 35 days due to the whipsaw that occurred (the quant reversed its signal within 48 hours). Stay alert for a whipsaw back to the short side tomorrow or Friday.

The quant is tracking four sectors of interest; SOX 372.42, XLF 15.66, VIX 15.85 and JJC 44.85. The first three are in the bull camp creating market positivity while copper is in the bear camp.  The bears need to win back SOX, XLF and VIX to weaken the markets while the bulls will focus on winning over JJC to continue the maket upside. For the SPX at 1410, the bulls have the easy road to hoe, only needing to see positive futures overnight which will create an upside acceleration in the SPX at the opening bell. The bears would have to reverse today's up move down to 1385 to accelerate a downward move. This is a formidable task, however, the bulls today reversed the entire move from Tuesday. The bears will mainly focus on stopping the upside momo by reversing one or more of the SOX, XLF and/or VIX. A move thru 1387-1409 is sideways action.

12/2/12; 7:00 PM EST EOM =

11/28/12; 3:51 PM EST = +19; signal line is +0; go long 1409; (Benchmark SPX for 2012 = +12.0%)(Keybot this trade = -0.7%; Keybot for 2012 = +21.7%)(Actual this trade = -1.5%; Actual for 2012 = +19.6%)

11/28/12; 3:26 PM EST = +19; signal line is -2 but algorithm says stay short

11/28/12; 3:09 PM EST = +3; signal line is -3 but algorithm says stay short

11/28/12; 2:11 PM EST = -29; signal line is -3

11/28/12; 2:07 PM EST = -13; signal line is -3

11/28/12; 2:01 PM EST = +3; signal line is -2 but algorithm says stay short

11/28/12; 1:41 PM EST = +19; signal line is -3 but algorithm says stay short

11/28/12; 1:39 PM EST = +3; signal line is -4 but algorithm says stay short

11/28/12; 1:36 PM EST = -13; signal line is -5

11/28/12; 1:20 PM EST = -29; signal line is -6

11/28/12; 12:46 PM EST = -13; signal line is -6

11/28/12; 12:38 PM EST = +3; signal line is -8 but algorithm says stay short

11/28/12; 12:31 PM EST = -13; signal line is -11

11/27/12; 3:56 PM EST = -29; signal line is -13; go short 1399; (Benchmark SPX for 2012 = +11.2%)(Keybot this trade = +2.1%; Keybot for 2012 = +22.4%)(Actual this trade = +3.6%; Actual for 2012 = +21.1%)

Note Added 11/29/12 at 4:32 AM: Copper is up 0.66%. Correlating this projection to JJC, now at 44.61, is thirty cents, thus, 44.61+0.30 = 44.91, which would punch JJC thru the key bull-bear level at 44.85, or at a minimum test this important level after the opening bell. The S&P futures are higher so SOX and XLF would be expected to remain buoyant, and volatility low, so the bulls will be happy with those three parameters.  Looks like the showdown is with copper this morning which will most greatly impact broad market direction today.  If JJC moves above 44.85 and heads higher, the SPX is going 10 or 20 handles higher over coming days.  If the bears hold the 44.85 resistance and spank JJC down, the SPX will level off and likely leak lower again. Thus, JJC 44.85 holds the key. Keybot continuously recalculates this bull-bear line so it may move a few pennies either way.  Watch the JJC bull-bear resistance level as 44.83-44.88 since it will tell you a lot about the broad market today and forward.