STOCK MARKET BULLISH -- LONG -- CAUTION

Keybot the Quant remains long as markets stagger towards the Fed decision and press conference Wednesday afternoon. The algo did not print any numbers during the Tuesday session. The RTH remains above 59.00 during the entire session so sideways with an upward bias is expected for equities which occurs. Market bears got nothing unless they push RTH under 59.00. The bulls need JJC above 37.59 (now at 37.26 causing market bearishness) which will guarantee a test of the all-time highs for the SPX and higher. Thus, bears need weaker retail stocks and bulls need stronger copper. Copper direction overnight will provide insight into the stock market for Wednesday. Copper is currently trading flat to higher so this would add a few pennies to JJC after the opening bell tomorrow.

For the SPX starting at 1942, the bulls need to touch the 1944 handle and an upside acceleration will occur to 1949 where price will decide to test the all-time highs at 1951-1956, or not. The bears need to push under 1934 to accelerate the downside. A move through 1935-1943 is sideways action and may very well occur until Fed Chair Yellen brings the tablets down from on high to direct markets how to trade.

The imminent turn notation is not in the title line above, despite the two-tick difference between the algo number and signal line, since copper moves higher (towards JJC 37.59) and the retail stocks move firmly higher (RTH above 59.00). If RTH loses 59, consider the imminent turn notation to be back in play and if the SPX then loses 1934, Keybot will likely flip short. The Fed decision and press conference between 2 PM EST and 3:30 PM EST will greatly impact market direction. Bulls win with JJC 37.59 and SPX 1944. Bears win with RTH 59 and SPX 1934.

6/22/14; 7:00 PM EST =

6/17/14; 9:00 AM EST = +63; signal line is +61

6/16/14; 3:03 PM EST = +63; signal line is +61