Keystone's Morning Wake Up 6-16-11

Short and sweet today; last couple days have been a heck of a ride. The algorithm was correct in staying short, at least this time.  Check one for the machines, zero for the humans that bot on Tuesday.

Greece riots are calming although the political turmoil continues.  Typically, Thursday mornings are weak after a large Wednesday sell-off, that was the case in the futures but as we approach the opening bell in a few minutes, the futures are improving.

Philly Fed at 10 AM will be a pivot.  Greece news is what everyone is looking for so the markets will react wildly to the wires.  Moments ago, the Chinese are now involved in the mix.

For the technicals, for today for the SPX, if the market bears can move only 3 1/2 points lower to lose the 1262 handle, the selling will accelerate and the starting year number 1257-1258 will surely be tested. Market bulls have a formidable task today, needing to move up 23 points to tag 1288 before an all-clear whistle can be blown.  Barring this, the bulls are probably just hoping for a sideways move to regroup.

The NYA now indicates that the broad markets have fallen back into a secular bear market.  SPX:VIX ratio is under 68 so short the rally mode is in place unless the ratio moves back above 68. Watch the beahvior in the utes.