STOCK MARKET BULLISH -- LONG -- CAUTION

Keybot the Quant is long and prints two additional numbers late afternoon Tuesday. The market bears were pushing back by late day driving the VIX back above 15.79 but in the final minutes volatility folded like a cheap suit and the bulls closed the day in a comfortable position. The algo number is now 21 points above the signal line showing firm control by the bulls.  The quant is tracking three sectors with interest; VIX 15.79, now at 15.57 causing bullishness, XLF 15.70, now at 16.07 causing bullishness and RTH 44.35, now at 44.95 causing bullishness. The bulls need to keep these three parameters in their camp and gaining ground higher which will cause markets to continue higher. The bears need to pull at least one of the three back into the bear camp to initiate market selling.

For the SPX starting at 1428, the bulls need to push above 1434 to accelerate the upside. The bears need to push under 1419 to accelerate the downside. A move thru 1420-1433 is sideways action. Markets remain erratic and unstable as verified by Tuesday's action. Wednesday's trading may prove dramatic with the Fed rate announcement and press conference on tap.

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

12/11/12; 3:52 AM EST = +33; signal line is +12

12/11/12; 2:59 PM EST = +17; signal line is +11

12/11/12; 9:52 AM EST = +33; signal line is +11

12/11/12; 9:35 AM EST = +17; signal line is +10; go long 1426; (Benchmark SPX for 2012 = +13.4%)(Keybot this trade = -1.4%; Keybot for 2012 = +20.2%)(Actual this trade = -1.5%; Actual for 2012 = +18.0%)