Watch the utilities, UTIL, today. If 414.42 is lost, UTIL starts the day at 415.11, then the broad markets will tumble large. 414.42 is a line in the sand the market bulls must defend. The bulls can create market buoyancy if they keep UTIL above 414.42 today.
For the SPX today, the bulls need to touch 1145 to start a recovery rally. Even though the futures are up, this goal is over 20 points higher, so the bulls will have to push hard to get there. If they do touch 1145, the buyers will then enter in force and the SPX will move up in short order towards 1155. The market bears need only push a couple points lower to start a new round of substantive selling. If the bears can lose the 1121 handle, and touch an 1120 handle today, the sellers will blast the markets and the SPX will more than likely head towards 1101. A move thru 1122-1144 is sideways indecision.
Watch at 10 AM since the New Home Sales data and Richmond Fed Manufacturing Index may create a market pivot. The 2-Year Note auction at 1 PM is another potential market pivot area today.
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