Keystone's Midday Market Action 1/19/12

The futures remained green on the positive bank earnings and jobless claims so the indexes were off to a bullish start.  The SPX 1312 is overhead resistance and tested a couple minutes after the open, and at 10 AM, now price is collapsing back down to test the opening price at 1308.  The utilties are very weak today, UTIL is down 4 points approaching -1%. Reference this mornings missive concerning utes.

CRB is in a big fight with 311.50, whichever side wins determines the push for the broad markets. For now, CRB is slightly above which helps create market buoyancy. If CRB moves lower the broad markets will trail lower.

Note Added 1/19/12 at 11:30 AM:  CRB has now tested 311.50 three times and it holds as support creating continued bullish buoyancy in the markets.  The SPX punched up thru 1312 resistance at 10:45 AM, came back down for a back kiss at 11:10 AM, established 1312 as support and bounced higher.  SPX HOD is 1314.52. Negative divergence remains across all the different minute charts but, the markets continue to float upwards.  Note that price is now attacking the 1314-1318 gauntlet, this is an uber strong resistance area. Keep watching CRB 311.50, if it fails, that will lead the broad markets back down. Otherwise, the bulls motor along drinking from the punchbowl.

Note Added 1/19/12 at 11:47 AM:  CRB keeps teasing 311.50 and may now be failing. SPX is up thru 1314 (HOD 1315.14) so 1316 is the next overhead resistance, part of the 1314-1318 gauntlet.

Note Added 1/19/12 at 1:57 PM:  CRB fell thru 311.50 but then recovered. Correspondingly, the indexes drifted lower but then recovered.  The market bears got nothing unless they can drive the CRB lower which will, in turn, weaken the broad markets.  Barring that, the bulls continue to par-tay and chew away at the resistance gauntlet at 1314-1318.

Note Added 1/19/12 at 7:00 PM:  CRB closed above 311.50 which allowed the bullish buoyancy all day long but watch it closely first thing in the morning.  The utilities, UTIL, finished down 4.5 points today. Utes topping in December and remaining weak are a troublesome indicator for the broad markets moving forward.  The tech giants' earnings this evening were not impressive and the Nasdaq has led the other indexes up all week long thus far. Therefore, this leadership, that supplied the bulish thrust this week, may break down tomorrow.