Keystone's Midday Market Action 12/6/11

SPX is traveling sideways thus far today, far short of the 1267 that would accelerate the upside, and far above the 1244 that would accelerate the downside, in fact, price is now printing 1256 smack dab in the middle.  The SPX is down 0.17% and the Nasdaq is down 0.51% so the bears have some street cred currently, with the Nas leading the downside. Markets will remain in this funk sideways to sideways lower as long as the Nasdaq leads down.  The sectors are all behaving themselves so far. The absence of any economic data places a stronger spotlight on Europe news.  For now, markets sit and wait as the ECB rate cut and Smmit approaches later this week. SPX is negative on the year by three points. Copper is hanging in there sideways thus far.

Note Added 12/6/11 at 2:01 PM:  SPX now printing 1257.64.....the exact starting year number 11 months ago.  And now collapsing thru.......keep watching.

Note Added 12/6/11 at 2:24 PM:  SPX now printing 1257.64 again.  And now up thru to explore the top side.......keep watching.

Note Added 12/6/11 at 2:44 PM:  SPX now printing 1262.96, the 200 day MA is 1264.26, can price break up thru this moving average?  Price did break up thru yesterday only to fail late day, now it makes another run.......1263.41.......85 pennies away.......Nasdaq is up far less than the SPX so the upside should be limited.

Note Added 12/6/11 at 3:28 PM:  SPX now printing 1262.48.  Price went up to test the 200 day MA at 1264.25 and is temporarily spanked back, see if it makes another run or if it fails........

Note Added 12/6/11 at 4:03 PM:  The weaker Nasdaq typically leads and it helped pull the indexes downwards into the close as would be expected.  SPX dropped thru the 200 day MA just like yesterday, that is two days that this support would not hold.  Then the 1261 support failed, then 1260 support.  Price is settling above the starting year number and using that uber critical support at 1258 as a resting place until tomorrow,closing at 1258 and change.