Keystone's Evening Nightcap 9-8-11

Just another now-typical nutty day on the Street once again.  The bipolar markets show the happy side from the bell into the lunch hour but Chairman Bernanke arrives with a wet blanket at 1:30 PM. The indexes went straight down the rabbit hole from over 1200 to sub 1190 faster than you can say 'fiat money'.  The volatility remains elevated continuing to create these psycho triple digit Dow days, up and down, and now gold is into the act as well with over 50 dollar daily swings becoming routine.  President Obama is promising a chicken in every pot as this missive is typed so be prepared for more wild market action tomorrow.

Let's avoid the political follies and stick to the technicals. Retail and commodites gave the go signal to the broad markets this morning but by the end of the day both sectors fell on their swords.  For tomorrow, the market bulls need the RTH to regain 103.42, now only pennies under at 103.28. The bears want to push the RTH lower to keep the negativity rolling along.

The market bulls also need the CRB to run higher up and over 340.44, now a half a buck lower. Bears want to see a 339 handle and lower to watch their index shorts grow in value.  For the SPX, if the market bears can push two and one-half points lower to get under 1183.34, the selling will accelerate substantially, the indexes will fall additional handles quickly. A move thru 1184-1204 is sideways action.  The market bulls need to get the SPX up and over 1204 if they want to undo the damage from today and see the buyers enter in force.

So the table is set for tomorrow. President Obama's speech drops a 450 billion package on the table instead of 300 billion, hey, a billion here a billion there, who's counting?  The President kept repeating, "Pass this bill! Pass this bill!" Maybe he is anxious for the football game kickoff as well, lucky for him he did not accidentally exclaim, "Pass the ball! Pass the ball!"