Housing numbers are on tap this morning. Fed's Pianalto speaks at 8:30 AM and George (she is the uber hawk) speaks at 12:30 PM so more Fed spin is on tap today to keep everyone dizzy. The CR deadline drama, for funding the U.S. government, is heating up with six days remaining. Senate Leader Reid says the House bill, that approves 99.9% of government funding, but defunds Obamacare, is dead on arrival. The political clown games intensify each day. Consumer Confidence, a key monthly indicator, is released at 10 AM and will create a market pivot point. So the way the indexes move during the first one-half hour of trading may or may not continue from the 10 AM pivot forward. The 2-Year Note Auction is 1 PM and this is important in relation to the 2-10 spread. KBH and LEN earnings are imminent which will also move the housing sector along with the economic data. VIX 14.67, JJC 39.97, XLF 20.00 and SPX 1711 and 1697 dictate market direction today. Use the VIX chart in the prior post to verify which side is winning.
Note Added 3:12 PM: Market bears had the brass ring in their sights this morning but slipped on a banana peel falling short. Copper collapsed at the open with JJC dropping under 39.99 and VIX popped towards 14.67 and XLF down to 20.00. Very little effort was needed to push it all over the hill and begin the downside in force, but, alas, VIX collapsed under 14, XLF moved up and away from 20.00, and JJC is above 39.99. The bears could not get the job done. That is why even though the SPX ruptured the 1697 level, price did not have a lot of downside juice due to lower volatility. TRIN 1.08 a hair negative. Big-time drama right now with the 8/34 MA cross on the SPX 30-minute chart. The 8 remains under the 34 favoring bears but is about to cross up through favoring bulls. The bears must drive the SPX lower in quick order, before the closing bell, down hard, to maintain downside control. If not, the bulls are going to start running markets higher. Watch JJC 39.99, VIX 14.67 and XLF 20.00. Current prints are JJC 40.09, VIX 13.90 and XLF 20.12 all three causing bullishness.
Note Added 3:40 PM: JJC 40.04. VIX 14.07. XLF 20.05. The bears fell asleep this morning but are waking up into the close. SPX is dropping this will keep the 8 MA under the 34 MA and keep the markets weak for the hours ahead. SPX is at 1699.86. Bears will receive downside fuel if they turn one of the three parameters negative. Bulls will hang on fine if they keep all three bullish.
Note Added 3:47 PM: The tension mounts. Bears are given a second try today. JJC 40.02. VIX 14.10. XLF 20.03. Copper and financials only a couple pennies from causing market mayhem. Can the bears do it on their second chance today?
Note Added 4:05 PM: JJC parks at 40-ish and XLF at 20-ish as identified by good ole Keybot ahead of time. With both of these key metrics sitting on their inflection points at JJC 39.99 and XLF 20.00, a critical up or down market decision will occur at tomorrow's open. VIX is 14.10 near its 14.67 line in the sand as well. To pile on more drama, the 8 MA is under the 34 MA on the 30-minute chart signaling bearish markets for the hours ahead, however, a gap up open tomorrow would place the bulls in the driver's seat, so this indicator is at an inflection as well. Rest up. Tomorrow's open is important and the broad indexes should make a commitment after the bell that will have a bit of staying power. Copper trading overnight will provide the answer. CY is bludgeoned -15% AH's. This is key since it tells you semiconductors are sick, a key component of the global economy.