Keystone's Midday Market Action 10/19/12; EU Summit

UTIL is 487.16, bullish.  SOX drops to 374.25, bearish, which creates a large drag on the broad market.  JJC hits the 46.70 projection from this morning, very near the danger line at 46.40.  VIX remains at 15.  The SPX plummets thru the 1453 level so a several more handle acceleration lower would be expected. Whoa Nellie, there's a 1449.18 print. The 30-minute chart shows the 8 MA remaining firmly down under the 34 MA which points the way to bearish markets for the hours and days ahead. Perhaps some sideways action using 1447 as support (this level is pointed out in last night's chart) until the market pivot occurs at 10 AM, only minutes away.

Note Added 10/19/12 at 10:15 AM:  SOX is crumbling, now 371.  JJC is 46.67 maintaining above the 46.40 danger area. Thus, the bulls cannot win over the SOX, and the bears cannot yet win over JJC, so status quo, markets will move sideways.  The SPX 20-day MA is 1446.78, a critical moving average. If this support fails, lower prices are on the way. The market bulls must hold 1447 with all their might.  The 10 AM pivot marks a top with the sideways price action thru 1448-1450 thus far. The price move from ths sideways channel is important. Whoopsies daisies. SPX may be slipping out the bottom now printing 1447.41. A test of the 20-day occurs with the LOD at 1447.05 only about twenty cents away from the 20-day MA.  The euro is 1.3025. Tech is leading the markets lower. The Autumn leaves requre attention but the markets may once again dictate the schedule.  JJC is now at 46.57....

Note Added 10/19/12 at 10:34 AM:  GOOG is under 700.  IBM is well under 200 at 194.  Keystone took profits on CEP exiting this long trade. CEP should hit 2 in the days and weeks ahead. The thin action hurts the stock, however, so Keystone will likely not reenter even though it appears to have based and should be fine moving forward. AMD is getting beaten again due to the chip and tech weakness. Keystone will likely double the position once the beating levels off.

Note Added 10/19/12 at 10:47 AM:  JJC is 46.53.  The SPX keeps testing the critical 1447-1448 support, if it fails, prices are going to drop to 1444 in a heartbeat, then 1440. Bulls need to bounce the SPX asap from here. SPX is now printing 1447.28.

Note Added 10/19/12 at 10:59 AM:  AMD falling like a stone. It may be due to a YHOO message board rumor that was posted where someone says they saw bankruptcy lawyers at the offices. If that proves to be false, that fellow is in a heap of trouble, the SEC will track him down. That news may have caused the panic selling. Keystone bot some AMD. This is a highly dangerous trade now, like the wild west.

Note Added 10/19/12 at 11:08 AM:  SOX is at 368.  UTIL remains elevated.  JJC 46.51. SPX hits 1444.

Note Added 10/19/12 at 12:31 PM:  Keybot the Quant (upper left margin) flips to the short side at SPX 1442.  Copper collapsed today, JJC is now printing 46.15 under the critical 46.33 bull-bear line in the sand.  VIX has now moved above the bull-bear line now at 16.30 which further emboldens the bears. The SPX has dropped below the important 200 EMA on the 60-minute chart which forecasts bearishness for the hours and days ahead. Remember we were watching SPX 1442 on that chart and if that failed 1440 would likely give way, which it did. It is probably prudent to stay short the markets as long as the SPX is under 1442.  SPX is now printing 1438.22 down 1.3% so far today.

Note Added 10/19/12 at 12:49 PM:  UTIL is now 484.73 which will set up next week bearishly if it stays under 485.67 at the close.  The negativity is stacking up, tech weakness and small caps leading lower, copper failure, volatility spiking, now utilities weakening again, the 30-minute chart is bearish, ditto the 60-minute chart, every one of these are bearish signals.

Note Added 10/19/12 at 1:37 PM:  The circus plays on.  SOX is 366, bearish. JJC 46.09, bearish.  VIX is 16.60, bearish.  UTIL is 483.96, bearish. SPX S/R is 1444, 1442.61 (200 EMA on 60-minute), 1441, 1440, 1438, 1435, 1433.51 (50-day MA), 1433, 1431, 1429, 1426.63, 1426, and 1424. The 1433 is key, watch that closely. The Nasdaq is down over 2%.

Note Added 10/19/12 at 1:58 PM:  The SPX stabbed down thru the 50-day, bulls have to step in immediately to save the 1433 support, otherwise, the SPX will target 1424 next. Euro is 1.3026.

Note Added 10/19/12 at  3:24 PM:  The bears push under the strong 1433 support but bulls now push back above as price regains the 50-day MA, this should be a fight into the close.  The euro is 1.3025.

Note Added 10/19/12 at 3:31 PM: Here's the test. Price is 1433.49. The 50-day MA is 1433.48. Bounce, or die.

Note Added 10/19/12 at 3:55 PM:  UTIL is under 484 no where near the 485.67 the bulls need for Monday morning, thus, this will cause market weakness as next week begins. Drama continues at the SPX 50-day MA. Bounce or die. Keystone bot BBY opening a new long position.

Note Added 10/19/12 at 4:02 PM:  It died.  Looks like the SPX closes under the 50-day MA as the day settles out, the bears receive another feather in their caps.  UTIL closing under 485.67 is a big deal. This number is important all next week and Keystone's algo will likely click lower as the Monday bell rings as a result of the utilities weakness, pointing towards more market bearishness ahead.  Keystone needs a heart pill and a slice of pumpkin pie to ponder the days events.