Tuesday, October 22, 2013
Keystone's Midday Market Action 10/22/13
The bulls run higher to a new all-time high at 1759.33 but are falling on their sword. SPX is now printing 1751. Watch UTIL 498 and GTX 4890. GTX drops under 4890 which creates the market weakness after the initial euphoria today but UTIL is now above 500 which is very constructive for stocks moving forward. UTIL must stay above 500 starting next week for the whole month after that, otherwise, the broad indexes will have a downward bias. The Nasdaq has slipped negative. The 10-year yield is 2.53% providing upside fuel for the utilities. VIX recovers strongly to 13.71 but remaining well below the 14.80 the bears need. VIX is up and SPX is up so one of them is wrong--watch today to see which. AAPL's announcements occur within the next 2 hours. AAPL is down to 519 after dropping to a LOD at 511.40. NFLX pukes -4% after it bounced +11% last evening on the stellar earnings. Perhaps traders are finally becoming concerned with price values in stocks. TRIN is 1.46 on the bear side today.