Keystone's Midday Market Action 11-15-11

The bears were all bluster this morning thus far.  Volatility and financials are in the bear camp while utes, retail and semi's are in the bull camp.  Note how the SPX dropped down to the 1247 level, printing a LOD thus far at 1247.21, and then launched like a rocket. Keystone's SPX:VIX Ratio Indicator remains at 40, bull-friendly.

As this is typed, VIX is dropping under 31.20 which will further embolden the bull case. XLF is at 12.97, remaining under 13.03 and market bearish. The bears were all bark, or growl, and no bite today, so far.  Watch VIX 31.20, XLF 13.03 and SPX 1247/1264 for broad market direction today. If bulls touch 1264, the upside will accelerate. If bears drop under 1247 the down side will accelerate. Use VIX and XLF to handicap the move one way or the other.

Note Added 11/15/11 at 10:03 AM:  XLF remaining under 13.03 favoring bears.  VIX on the move upwards, now above 31.20 so back in the bear camp. Note how the indexes are giving up steam as volatility rises. Nothing to get excited about today unless the SPX violates 1247.

Note Added 11/15/11 at 10:23 AM: Watch SPX 1247......now printing 1248.......

Note Added 11/15/11 at 10:30 AM:  Typically, markets are bullish from Tuesday into Wednesday during OpEx week, just something to keep in mind.  SPX now printing 1249.........VIX and XLF are market bearish.

Note Added 11/15/11 at 12:12 PM:  VIX and XLF remain market bearish finally triggering Keystone's algo to flip to the short side.  The markets are moving sideways today thus far. Market bulls are currently pushing back. Watch VIX 31.20 and XLF 13.03. Surprising that the SPX dropped only a couple additional points once 1247 was breached, a move of several more handles would have been expected. Perhaps some of the pro's are buying the lows for a move up into Wednesday. Markets are very indecisive.

Note Added 11/15/11 at 12:46 PM:  VIX moves under 31.20 to join the bull camp at 12:35 PM ushering in the market bounce. XLF remains bearish.

Note Added 11/15/11 at 1:10 PM:  VIX well under 31.20 at 30.92 firmly helping the bull case.  XLF testing 13.03 now............13.02............

Note Added 11/15/11 at 1:33 PM:  XLF punches above 13.03 to print 13.05.....see if it holds, if so, it will further support the market upside.

Note Added 11/15/11 at 1:49 PM:  XLF now above 13.03 for 13 minutes, rejoining the bull camp. The SPX now at 1261.  Watch SPX 1263.85, that will open the bull door to accelerated market upside. Market bears need to keep that door closed and drive the XLF back under 13.03.

Note Added 11/15/11 at 3:24 PM:  SPX HOD printed at 3:06 PM at 1263.84. Isn't that interesting? Here she comes again, watch 1263.85.