Keystone's Midday Market Action 12/14/11

RTH, the retail sector, promptly collapsed thru the 109.40 at the open, then played around above and below but committed to the bear side since 10 AM. SPX collapsed thru 1220 so the accelerated selling occurred. Bears have a bite in the markets today, the Nasdaq is leading the down move so that gives it some strength.  Volatility popped back up to make up for a couple sideways days. TRIN is 1.30 indicating steady eddy selling but not as high as would be expected to reflect the market negativity. SPX continues to punch out new lows. 1210 is critical area of support. If that is lost, 1204 is in play.  Continue watching RTH 109.40 and SPX 1220. The bears are in control.

SPX S/R: 1235, 1233, 1229, 1227, 1225, 1224, 1220, 1219, 1216, 1215, 1210, 1209, 1207, 1206, 1204.

Note Added 12/14/11 at 12:06 PM: SPX now testing 1210 support again........

Note Added 12/14/11 at 1:07 PM: RTH back above 109.40, now printing 109.47. This helps the bulls mount a comeback raly today. Watch SPX 1220.

Note Added 12/14/11 at 1:13 PM: RTH back below 109.40, the market bears are not messing around today, they are keeping the broad market negativity in place, for now.

Note Added 12/14/11 at 2:08 PM: RTH moved above 109.40 at 1:14 PM and then collapsed below again at 2 PM.  CRB is at 295.71, holy smokes, tumbling towards deflation. Bears remain in charge. Gold is down 92 to 1571. A close under 1580 opens the door to 1520. 10-year yield is 1.91%.

Note Added 12/14/11 at 2:38 PM: RTH popped above 109.40 for a quick look at 2:30 PM but that only lasted one minute. SPX now testing 1210 again. 

Note Added 12/14/11 at 3:07 PM: RTH remains under 109.40. SPX continues to test 1210 support.  10-year yield is 1.90%. Bears comfortably in control.

Note Added 12/14/11 at 3:13 PM: SPX came down to test 1210, it ruptured for a minute, then catapulted skyward now approaching 1215, a big bounce off that 1210 support. RTH is at 109.37, not yet above 109.40 to confirm a bullish recovery move.

Note Added 12/14/11 at 4:04 PM: RTH pierced the 109.40 level four times in the last 45 minutes but could not regain that level, receiving a smack down each time.  SPX support at 1210 held today. SPX was up 1.1% so the VIX should be up over 4% but volatility ended the day up 2.7%. Volume came on strong in the afternoon logging in at 7% above the 10-day average volume, stronger than yesterday's selling.  Traders are busy with holiday trimming.