STOCK MARKET BULLISH -- LONG -- CAUTION -- TURN MAY BE IMMINENT

Keybot the Quant remains long as the market roller coaster rolls along. The algo wants to go short right now but internal programming rules continue to prevent the move. Utilities, commodities and copper are dictating market direction with financials and retail creating a second-level affect. UTIL begins at 482.57 causing bearishness under 484.03, but at the same time causing bullishness above 476.94. Bulls will push equities higher if they regain 484.03. Markets would be in huge trouble if the UTIL 477 level would fail. Watch GTX 4888.34, now at 4881, creating market negativity, since its move at the bell will likely send markets in the same direction. Bulls need to move GTX above 4888 to take markets higher. Watch JJC 40.19, now at 40.53, causing market positivity. Market bears need to push JJC under 40.19 to lock in further equity downside. If UTIL stays under 484 and above 477, and GTX under 4888, and JJC above 40.19, status quo, the broad indexes will stagger sideways. If JJC drops under 40.19 and/or UTIL under 477, and the SPX drops under 1696, and stays under, Keybot will likely flip to the short side, hence the imminent turn status is displayed. Interestingly, copper is down in early trading which would send JJC lower for a test of 40.19, however, copper is bouncing around like a ping-pong ball these days and things may change by the open about 4 hours away. S&P futures are +7 pointing to a higher start.

For the SPX today starting at 1698, the bulls need to push above 1711.50 to create an upside acceleration which will tag 1715 in a flash and then perhaps 1720 and then the very strong 1722 resistance. The bears need to push under 1696 and a downside acceleration will occur to the strong 1691-1692 support in quick order. A move through 1697-1711 is sideways action. Watch UTIL 484, GTX 4888 and JJC 40.19.

10/17/13; 9:00 AM EST =

10/15/13; 2:32 PM EST = +34; signal line is +35 but algorithm remains long

10/15/13; 2:18 PM EST = +48; signal line is +32