Keystone's Midday Market Action 11-21-11

Keystone's SPX:VIX lost the 35 level at the open.  RTH lost the 108.75 level.  The S&P is down  1.82% while the Nasdaq is down 1.81%.  Note how the Nasdaq gained speed to the downside, now moving in step with the S&P.  For the downside to have further oomph, the Nasdaq will have to lead. As long as the SPX:VIX stays under 35 and the RTH under 108.75, the market weakness will linger. The utilities are now the only major sector supporting the market bulls.

Note Added 11/21/11 at 10:13 AM:  Existing Home Sales data did not inspire markets, in fact the indexes weakened more.  SPX:VIX is printing 34.59, under 35.  RTH is at 107.79 tumbling today. S&P is down -1.85% and Nasdaq is down -2.02%. Note how the Nas has taken the down side lead, this is bearish for the indexes today, the weakness is real. The SPX lost the 1200 level today, first time since 10/20/11, which was the day the Fed stepped in to save the markets with their quantitative easing talk by Yellen and others.  No such stick save today, at least so far. SPX trying to hold on to 1191 support.

Note Added 11/21/11 at 10:20 AM: SPX losing the 1191? Support exists at 1191, 1189, 1188, 1183 and 1181. If price moves under 1181, the key levels below are 1178, 1173, 1166, 1163 and 1155. SPX holding 1191 for now.  SPX:VIX ratio is at 34.75.

Note Added 11/21/11 at 10:24 AM: SPX:VIX at 34.81 now......bulls trying to make a come back.......34.85......

Note Added 11/21/11 at 10:30 AM: NYAD is -2400 consistent with where markets reverse back up. SPX:VIX at 34.83.  If the SPX:VIX ratio moves back above 35, the markets will rally. Market bears need the ratio to start dropping again.

Note Added 11/21/11 at 10:49 AM:  SPX 1188 now being tested, if it fails, 1183 is next.  SPX:VIX at 34.44 well under 35 now signaling full steam ahead for bears.  TRIN at 3.43 showing strong selling but these high levels will need to come back, thus, the TRIN and NYAD are indicating a relief pop in the coming hours, or tomorrow, to simply provide a rest from all the down side. There's the 1188 level giving way, SPX now printing an 1187 handle........Nasdaq -2.4% and S&P -2.30% so the weakness remains real and steady for today. SPX should make its way to 1183 now for a test.

Note Added 11/21/11 at 2:21 PM:  Note that Keystone's SPX:VIX moved back above 35 at 2:10 PM, about ten minutes ago, you will see indexes recover.

Note Added 11/21/11 at 2:28 PM:  Retail sector rolled over today which created the extended weakness in equities markets.  SPX playing around at 1191 S/R currently. Nasdaq and S&P are both down about 2% so this hints at a moderation to the move down in the indexes.  NYAD placed a low today at -2500 so that is consistent with a market that has experienced strong selling and will need to bounce.  Ditto the TRIN. SPX:VIX now printing 35.57, so above 35, thus the bulls are fighting back and not rolling over.