STOCK MARKET BULLISH -- LONG -- CAUTION

Keybot the Quant remains long. The algo did not print any numbers during the Thursday session. The bears had, and have, a potential trend change on a silver platter but cannot convert as yet. If the VIX moves above 13.73, and the SPX drops under 1623, it is highly likely that Keybot will flip to the short side, however, the bulls remain in control currently. If the JJC (copper) moves above 41.90 and/or the GTX (commodities) moves above 4810, the bulls will receive further upside market fuel and the bear's hopes will vanish.

For the SPX starting at 1627, the bulls need to push above 1635 to accelerate the upside where price will likely touch the 1640 handle in quick order. The bears need to push under 1623 to accelerate the downside to 1619 and potentially 1613. A move through 1624-1634 is sideways action. Markets remain erratic and unstable; simply look to yesterday's action where the SPX fell twelve handles, from 1635 to 1623 in only one hour's time. Remain alert and cautious. Bears win the game with VIX 13.73 and SPX 1623. Bulls win the game with SPX 1635 and/or JJC 41.90 and GTX 4810. The S&P futures are up about five as this missive is typed about five hours before the U.S. open.

5/12/13; 7:00 PM EST =

5/8/13; 11:04 AM EST = +46; signal line is +33