Keystone's Midday Market Action 11-11-11

Another highly active market day providing drama.  Financials, XLF, and volatility, VIX, hold the key for the remainder of today and into Monday. Semiconductors, the SOX, are up strongly today. The utes, retail and semi's continue to be the main bull pillars of support for the bullish markets.  At the open, financials and volatility decided to join the bull party, hence the big run up in the indexes.

Simply monitor market direction today with XLF 13 and VIX 30.45.  XLF now printing 13.24 and VIX now printing 29.88, both are market bullish, so the wine is flowing like water and the bulls are already in search of lamp shades to start an early party weekend. If any selling occurs from here for the indexes, it will show itself first with the XLF falling under 13 or VIX above 30.45. Barring that, the bulls will be in a good mood all day long.

Note Added 11/11/11 at 10:55 AM:  A couple more items to watch is the behavior of price versus the 200 day MA's for the major indexes and sectors.  Specifically, for the SPX, the 200 day MA is now showing 1272.28 (use Stockcharts.com or your fave charting service and watch the 200 day MA in real-time).  In addition, one of Keystone's Secular Signals is the 12 month MA cross.  The SPX 12 month MA is now 1282.34. Thus, if the market bulls keep the party alive with XLF and VIX as described above, then watch SPX 1272, then 1282, since these levels will signal an extended bull rally ahead. At this juncture, however, the up move remains suspect, especially with AAPL down today. A Moment of Silence is now observed on the trading floor for all of our brave veterans.

Note Added 11/11/11 at 11:41 AM: Note that VIX is moving up, now printing 30.23, only 22 cents away from the 30.45 bull-bear line. XLF is strongly supporting the broad markets now printing 13.26, well above 13. The VIX 30.45 number is the most important thing to watch the remainder of the day.

Note Added 11/11/11 at 12:46 PM:  VIX at 30.42 five minutes ago.......now at 30.38....bears are trying to start trouble if they move VIX above 30.45. Bulls want the party to live on so they need to spank the VIX back down now.

Note Added 11/11/11 at 1:18 PM: The bulls slapped the VIX back down, thus the broad markets regain upward buoyancy.