Keystone's Midday Market Action 10-12-11

So we were watching the three compadres; UTIL 439, XLF 12.60 and VIX 29. Financials launched, kicking in at 10 AM and not looking back so far. The financials strength is causing the market run-up today. Now semiconductors, retail and financials are the bull drivers of this recovery rally.

UTIL remains under 439 and VIX remains above 29 so the market bulls do not have any help from these two as yet.  To provide some more exact numbers right now, watch VIX 28.75, now at 30.47. If VIX gets below 28.75, the broad markets will launch upwards with another bullish leg.

The 10-Year Note Auction is at 1 PM and the FOMC Minutes at 2 PM so the day is young. Watch XLF to see if it can maintain the 12.60 level today (now at 12.72). Things continue to go the bulls way, we will see if this direction holds after the auction and minutes.

SPX 1209-1210 is key support/resistance so now that the index moved above, view 1209-1210 as key support now, then 1204. The Nasdaq is up 1.46% and the S&P is up 1.45%, right on top of each other, thus, since the Nasdaq is always the leader, this hints that the up move is pretty much built in for today right now.  If there were more bullishness for today the Nasdaq should be a higher percentage. NYAD is at +2100 now so the bulls are starting to get too big for their britches again.