Keystone's Midday Market Action 12/9/11

Semi's puked at the open, the Texas Intruments, Texan, news obviously providing the smack down. SOX now printing 364.80 well under Keystone's algorithm's level of bull-bear separation at 371.30.  The financials will have to weaken if the market bears want to make progress today.  XLF, now printing 13.00, would need to fall thru 12.75.  Copper remains in the bear camp although it just popped. Watch the JJC 45.40 level, now printing 45.28.  The Nasdaq is not leading the upside so this upside move in the broad indexes should peter out. Utes, retail and fianancials continue to support the market bulls. VIX now printing a 28 handle, down over 5% currently, market bullish.

Note Added 12/9/11 at 9:44 AM:  JJC now at 45.35, only a nickel away from signaling increased upside market momo. University of Michigan Consumer Sentiment hits in ten minutes.

Note Added 12/9/11 at 9:52 AM:  JJC now at 45.45, breaks up thru 45.40 so as long as it stays above, the broad markets will experience further buoyancy.

Note Added 12/9/11 at 10:23 AM:  JJC is staying above 45.40 and the SOX moved above 371.30 at 10:10 AM, providing the market upside.  But, only four minutes later the SOX fell back below, but, at this writing SOX is 371.38 back above. If the SOX stays above 371.30 market bulls will drive the indexes higher. If SOX is below 371.30, a lid remains on the upside. Market bulls need to touch a 1261 handle today to get the bull party in full gear but the SPX has not even been able to attain 1250 so far. Watch SOX.

Note Added 12/9/11 at 1:30 PM:  JJC is remaining above 45.40. SOX moved above Keystone's 371.30 level at 11 AM and boosted the broad markets.  SOX came down for a successful test of 371.30 for four minutes exactly at noon, and then bounced onwards and upwards taking the broad markets along.  How does Keystone know these numbers to watch ahead of time like SOX 371.30? Market bulls will remain in control as long as these two characters remain bullish, JJC 45.40 and SOX 371.30.  NYAD now printing +2015 remedying the uber low number discussed this morning.  Likewise, TRIN is now 0.57, uber bullish remedying the uber bearish 5.2 number from yesterdays close.  These indicators were looking for a snap back rally--which is occurring now.  Interestingly, in these fast-moving markets, the NYAD and TRIN have overcompensated to the point where they would actually be agreeable to market selling again. The Nasdaq is up more than the SPX so that hints at bullish staying power into the close. On Friday's, markets typically drift upwards in the afternoon due to shorts paring back positions to avoid upside risk but the current economic and political atmosphere is not typical. JJC and SOX will tell you market direction the rest of the day.

Note Added 12/10/11 at 3:12 PM:  JJC and SOX remained elevated thru the close on Friday keeping the broad markets buoyant into the close. JJC and SOX remain important thru Monday; Keystone will post the levels of interest as the weekend progresses.