Keystone's Midday Market Action 10-18-11

Watching UTIL 436.75. The utes maintain buoyancy above this level so the markets are moderating sideways. Watch carefully, UTIL now printing 437.11, only 36 pennies away.............now 437.07.......this is getting interesting, hold on............

Note Added 10/18/11 at 9:48 AM:  UTIL bouncing around but maintaining itself above 436.75. Note that the SPX fell under the important 1198.50 for today, this should usher in additional selling, but, if UTIL stays above 436.75, the market selling will not be significant and the indexes should recover. If UTIL fails 436.75, all bets are off, markets will be moving much lower.

Note Added 10/18/11 at 9:52 AM: UTIL just tested, 436.78, 436.79, bounce........keep watching the broad market direction is now being decided..............437.00.........first try 436.75 held.....what about the next time...she should come back down again...............

Note Added 10/18/11 at 9:53 AM: There it is, failure......UTIL sub 436.75.....broad markets will sell off substantially now....see if the utes maintain this failure for at least seven minutes...............

Note Added 10/18/11 at 12:08 PM: UTIL regained the 436.75 level at 11:37 AM sounding the all clear again.  Keystone's SPX:VIX ratio went back above 35 at 10:23 AM stopping the market selling. Thus, the bulls are in control again. Watch the financials now to determine how much juice the market bulls got.  XLF now at 12.53, only needs four pennies, 12.57, and the broad markets will move another leg upwards. Keystone's algorithm, Keybot the Quant came within three minutes of flipping short at around 10 AM but rules for the algo kept it on the long side. Watch UTIL 436.75 and XLF 12.57. Interesting, XLF now printing 12.55.........keep watching........