Keystone's Midday Market Action 11-28-11

Let's take a look at the tools. If following along, you see the market bulls in full control.  The utilities sector, UTIL, remains elevated. The retail sector, RTH, jumped above the 108.50 level at the open and is now printing 109.32, market bullish. The SPX:VIX jumped above 35, now printing 37.45, market bullish. Lower relative volatility is shown by the VIX dropping under 32, now at 31.92. This is market bullish but only by a sliver, pennies. The SPX blew up thru the 1181-1188 resistance cluster like it was not even there, bullish. Now it becomes the 1181-1188 support cluster.

The bulls came to play today; the markets were beat down and the shorter term indicators such as NYMO and CPC wanted to see this bounce.  Keystone's algorithm flipped back to the bull side, for now. Watch for a whipsaw move today or tomorrow.

For the remainder of the day, markets should remain elevated. Continue to monitor RTH 108.50 and VIX 32 for broad market direction moving forward from here.   RTH is now printing 109.17 which provides market bullishness and buoyancy. VIX is at 31.93 under the 32 level which provides market bullishness and buoyancy. Watch VIX closely since it is on the bull-bear line and a move above 32 will start to place a sad frown on this happy bull day. If VIX stays under 32 all day, the wine will flow like water.

Note Added 11/28/11 at 11:03 AM:  The VIX moved above 32 at 10:50 AM; market bears are pushing back trying to spoil the day. VIX now printing 32.28. SPX:VIX remains above 37, well above 35 and market bullish. RTH printing 108.93 still above 108.50. If volatility remains elevated above 32, watch RTH 108.50 to gauge any further bearishness.

Note Added 11/28/11 at 12:16 PM:  Status quo, UTIL, RTH and SPX:VIX are providing market bullishness. VIX is providing bearishness but not succeeding in pushing the indexes back down.  If VIX stays above 32 (bearish) and RTH drops under 108.50, the bullish fun today will quickly end as markets reverse and sell off.  Conversely, if VIX drops back under 32 today, the market rally will extend upwards on bullish euphoria into the close.  Thus, RTH 108.50 and VIX 32 tells you everything you need to know for the remainder of the day.

Note Added 11/28/11 at 5:06 PM:  RTH moved under 108.50 during the afternoon which ushered in market weakness but then price danced above and below before closing the day above 108.50 favoring market bulls.  Similarly, the volatilty, VIX, spent the bulk of the day above that 32-ish area but then late in the session stumbled lower to tip its hand that it actually favors the market bulls. For now, the bulls are in control of the indexes.