Keystone's Midday Market Action 1/11/12

Commodities weakened on the stronger dollar today causing the weak markets, but the copper strength is firmly supporting the buills.  The recent China easing talk has traders liking copper again. The CRB ventured under 313 today but now remains buoyant above 314. The market down move did not have much juice today since the Nasdaq was not leading lower as shown by this mornings futures.

Markets are meandering sideways.  On the upper side, the SPX faces the 1292.66 resistance, then the 1296.50 level.  On the down side, the market bears need to see 1281. Otherwise, the SPX drifts sdieways until resolution occurs out one side or the other.  Perhaps traders are waiting for the European bond auctions and ECB rate decision in the morning.

Note Added 1/11/12 at 6:38 PM:  Copper singlehandedly boosted the broad markets today. JJC exploded higher.  Watch CRB 313.20 tomorrow to see if the bears can begin anything. The SPX punched thru the 1292.66 but closed below for a second day in a row. This is the October high, so price did not have the strength to close above the October high for two days in a row--not exactly the uber bullishness that should be in place considering the bullish sentiment with traders running around waving flags, throwing confetti and playing Happy Days Are Here Again on kazoo's. CPC at 0.79 shows the complacency, no fear, no worries, the wine is flowing like water. The CPC printing in the 0.7's or lower is consistent with identifying market tops.