Amazing to see the SPX jump over 20 points today but the financials did not participate in the bullish fun. Copper is very sick, the doctor needs a doctor. The rally today is a head-scratcher. The VIX remains elevated and the CPC put/call printed an 0.76. This is a fascinating number showing a total lack of fear. Traders are tripping over themselves buying stocks without a care in the world, any selling long forgotten, the whisky flows like water.
Even with all the turmoil in the world, Japan, Libya, oil and gasoline prices, etc..., the froth is immediately back in the market. NYAD shows a high reading ready to reverse which corresponds to broad market selling. SPX:VIX ratio remains neutral under 68 so a continued downward trend is in place currently for the markets.
The utilities bounced big today, most likely POMO pumpage. UTIL must have been quite a scare last week coming so close to failing so, now at 406, it is comfortably above 397 and 394 levels which represent broad market trouble.
SPX daily 20 MA, 50 MA, horizontal support and current price all forming a confluence now at 1298-1304. Braod markets look ripe for the next leg down now. 20 MA should cross down thru 50 MA which is bearish.
Financials will be the tell in the morning. If the financials start running north and the SPX gets up over 1301, the market bulls are truly running.
If the financials languish after the open, the broad markets should sell off.
The VIX is at 21 so large 200 point up and down Dow days remain ahead and will be the norm for a little while.
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