Keystone's Midday Market Action 11-25-11

UTIL popped above the 50 week MA at the open and you see the market buoyancy. The market bears, however, are keeping their claws firmly on the market, since SPX:VIX remains under 35 at 34.22. If the ratio moves above 35, then the day will be a happy one as the holiday shopping weekend continues along. The SPX:VIX will serve as rally confirmation, or non-confirmation. Now printing 34.36.......

Note Added 11/25/11 at 9:39 AM: SPX:VIX at 34.80......34.77......the Nasdaq is leading the upside which is bullish for today.  NYAD, NYMO, CPC and TRIN may have led the way today.  Here's SPX:VIX 34.87......... market bulls need 13 more pennies to declare a battle victory today, the mini rally pop looks good so far.

Note Added 11/25/11 at 9:43 AM:  SPX:VIX 34.91....34.92.....34.97.......34.99.......35.00.  Bingo. The 35 will lock in the bull fun for today, keep watching this ratio for the remainder of the session.  U.S. markets close shortly after the European markets. SPX:VIX 35.03 indicating that the market bulls are running, but they are only on the good side by three pennies. A countertrend market pop is occurring as the charts and TA showed this morning, so far.

Note Added 11/25/11 at 10:06 AM: The par-tay is in full swing now, utes rockin' higher, UTIL above 426, SPX:VIX ratio at 35.26. The market bulls are throwing confetti, pouring the wine, and searching for lamp shades to place on their heads in front of the fun holiday weekend.

Note Added 11/26/11 at 6:19 AM: The bulls ran out of gas in the Friday session at 11:24 AM when the SPX:VIX ratio fell back under 35. Markets drifted lower into the close but note that UTIL closed at 426.01 well above the danger level and maintaining the utility sector as the sole sector supporting the bull side. Broad markets will be buoyant as long as UTIL stays above 424.35. Watch UTIL and SPX:VIX on Monday to determine market direction. If UTIL drops under 424.35, then the bears will push the broad indexes lower. If UTIL remains above 424.35, and SPX:VIX moves back above 35, the broad markets will recover and stay buoyant. The NYAD, NYMO, CPC and TRIN chart profiles bounced the broad markets on Friday as previously discussed. The low readings were remedied somewhat but remain agreeable to seeing broad market buoyancy moving forward in the VST. Note that the SPX held the critical sturdy horizontal support at 1155 so that level is key early in the new week.