Wednesday, January 15, 2014

Keystone's Midday Market Action 1/15/14; SPX Prints New All-Time High; Beige Book

The SPX prints new all-time highs and turns positive on the year. The all-time intraday high is 1850.84, printed today, and all-time closing high remains at 1848.36 from 12/31/13, for now. Another odd day of market behavior occurs. RTH remains under the critical 60.04 bull-bear line in the sand. UTIL is flat at 490-ish. Copper was weak overnight, and JJC stumbled lower to begin the day but now jumps higher as copper catches a bid with each passing hour. VIX is relatively flat today near 12. Scroll back, or use the search box (type 'SPX daily' into the search box) to bring up the last couple of SPX daily charts. Remember the tiny green circle highlighting the bump up in the RSI that wanted price to come back up for a look at the all-time highs? Well, the SPX finally did which buttons-up the loose ends. The SPX weekly and daily charts are now universally negatively diverged across all indicators so a top is at hand or very near.

Bulls have the seasonality going for them right now. Yesterday the Tuesday low to a Wednesday high behavior begins and continues as is always expected during OpEx week. The full moon is 10 PM EST this evening and equities are typically bullish through the full moon. The outdoors were bright as day time overnight last night. The Martin Luther King Day holiday is Monday so markets tend to be bullish moving into the 3-day holiday weekend. Housing Starts and Consumer Sentiment are released on Friday morning so that may create a fly in the ointment. The SPX 2-hour and 1-hour charts show long and strong indicators so that hints that about 2 to 6 hours of time will likely be required, at least, to develop a near-term top. This places markets into the late this afternoon and tomorrow time frame.

Fed's Evans is on deck for 12:50 PM to pump the markets higher. The Beige Book is released at 2 PM and will create a market pivot point. Keybot the Quant remains short. RTH is under 60.04. UTIL is under 494.12. JJC is over 40.40. VIX is under 13.87. Watch the SPX all-time closing high at 1848.36 to see if the bulls create a happy finish today, or not. Retail, utes, copper or volatility will likely have to make a decision to confirm the respective market direction forward. The dollar/yen is now up to 104.50 pumping the stock market higher. Banzai! Yesterday the dollar/yen was a touch under 103 so the jump from 103 to well over 104.50, reflecting the BOJ bludgeoning the yen, is what creates the stock market rally yesterday into today. The Fed and BOJ are the markets. Fed's Evans wipes the ketchup stains from his tie as he departs from the free buffet carrying a slice of chocolate cake. He performs leg extension exercises as he prepares to cheer lead the markets higher in about one-half hour. Markets may slide sideways into the Beige Book at 2 PM.

Note Added 6:07 PM:  A 2-penny beat. The SPX prints a new all-time closing high at 1848.38. The SPX is also now up on the year--by 2 pennies. VIX was flat despite the big up day. Financials, tech and chips lead higher. The 2-day bludgeoning of the yen creates the rocket fuel for the stock market.

No comments:

Post a Comment

Note: Only a member of this blog may post a comment.