Keystone's Evening Nightcap 9-9-11

That was the longest four day trading week that Keystone can remember, the last two days an eternity.  The market slide started yesterday at 1:30 PM with Chairman Bernanke pushing the markets off the cliff. The central bankers have a knack for causing mayhem since Stark's resignation from the ECB today slapped equities further south. The 10-year yield moved under 1.9% briefly and now prints 1.92% as traders flocked to the safety of U.S. treasuries.

The dollar jumped large over the last two days in opposite direction to the euro falling, as would be expected, again a flight to safety.  The Euro banks were bludgeoned today, the Eurozone now living the U.S.'s Fall 2008 scenario nightmare.  Greece is on the verge of default. The concern is the contagion to Italy, Ireland, Portugal and Spain. The ongoing G-7 meeting perpetuates the 24/7 worries thru the weekend.

Keystone told you to watch support at SPX 1155 this morning before the carnage began. Today's close 1154.23. The LOD was 1148.37 and low for the week 1140.13 so keep an eye on these levels next week.  The Dow Industrials lost over 300 points today closing under the psychological 11,000 level.  The key for the bulls was to not lose Keystone's 'trap door' signal, the UTIL 50 week MA, and sure enough, the bulls can at least hang their hat on this for the weekend. UTIL closed at 419.89 and the 50 week MA is 415.70 so the buoyancy in the utes avoided the waterfall event for the broad markets. If the 415.70 should fail, then the broad indexes will go over the falls, but, barring this, the market bulls will weather this short term hail storm. Lots to review this weekend.