Keystone's Midday Market Action 12-2-11

Financials, semi's and copper are key to determine broad market direction today.  Watch XLF 12.73, starting at 12.74, SOX 370.50, starting at 375.32, and copper, JJC 45.25, starting at 45.51. Thus, XLF is the major influence on markets as the bell rings.

The futures are up large so a strong start is expected.  At the bell, XLF jumps to 12.90, bullish, SOX and JJC are driving higher adding to market bullishness. For the SPX, 1251 was a magic resistance number and that immediately gave way so further upside is expected and we are already there with the SPX moving close to 1255, now over. Markets continue to favor the bulls. With XLF remaining above 12.73 today, bulls will be on cruise speed.

Note Added 12/2/11 at 9:45 AM:  The utilities, UTIL, are flat to negative. If markets intend to roll over and die, the utes will lead down if the down move plans to be substantial. Something to keep in mind as the markets celebrate the upside today. XLF is at 12.92 comfortably above 12.73 keeping a sturdy bull day on tap.

Note Added 12/2/11 at 10:03 AM:  Markets are on auto pilot unless Europe releases negative comments.  XLF is at 13.00 now, strongly positive.  UTIL, however, remains red. There is no additional data or earnings ahead today so markets will be at the full mercy of Europe. The starting year number for the SPX is 1257.64 so look for action in and around this key support/resistance level. The Dow Industrials are positive on the year currently.

Note Added 12/2/11 at 1:58 PM:  Utes remain red all day long casting a pall on the markets but the bulls remain in control overall.  S&P is up 0.45% and Nasdaq is up 0.45%, thus, markets are content with floating along sideways into the weekend.

Note Added 12/2/11 at 3 PM: Nasdaq is up 0.22% and S&P is up 0.16% so a slight edge to tech leading the upside, thus, even though the indexes have drifted lower this afternoon, they should float back upwards into the close.