Keystone's Midday Market Action 10-6-11

ECB left rates unchanged as forecasted.  After the open, the utes, UTIL, jumped above 424.  This is encouraging for market bulls.  But, retail, RTH, came up to 103.50, then failed. Now UTIL fell below 424, now 423....... SPX did not make it above 1146. Market bulls do not have the juice to take markets higher.  The key is UTIL 424 and RTH 103.50, these levels represent the juice that is needed for the bulls. If prices hold below these values, the market bears are wrestling back control of the indexes.

Note Added 10/6/11 at 10:21 AM EST:  UTIL still threatening the 424 level, now at 423.57. RTH number to watch is now 103.57 (Keystone's algo continuously calculates this number so it changes by a few pennies each way each minute). RTH now printing 103.52 only one nickel below. SPX popped up and over 1146 the last couple minutes...............

Note Added 10/6/11 at 10:25 AM EST: UTIL popped above 424 at 10:21 AM, as the above post was typed, thus, the SPX popped as well. Now UTIL is over 425. RTH at 103.52 not yet above 103.57. Starting to go the bulls way.........

Note Added 10/6/11 at 12:30 PM EST:  RTH popped to the upside at 10:20 AM immediately followed by UTIL at 10:21 AM which triggered Keystone's quant to flip to the long side call for the overall broad markets. The market bulls have the upper hand as long as UTIL stays above 424 and RTH stays above 103.70.