Keystone's Midday Market Action 2/2/12

UTIL spikes skyward at the open tagging 453 then collapsing. Bulls are happy above 452.66, market bears are happy under.  CRB drifting lower but remaining in the bull camp for now, a point above the 309.50 danger level.  Buoyancy in the markets results in a HOD at SPX 1327 so far but bulls need 1330.50 to accelerate the upside. UTIL now falling under 450, bears smile.

The SPX is up 0.11% and the Nasdaq is up 0.22%, thus, those strong tech bulls continue to provide bull market strength. Watch to see if Nasdaq leadership fades, or not, today. Markets will maintain buoyancy as long as tech leads the upside. SPX:VIX ratio at 71.73 shows that bulls do not have to worry, unless the bears can push the ratio under 68.

Note Added 2/2/12 at 10:41 AM:  The bulls are pushing UTIL up and over 452, they may be making a run for 452.66. If attained, strong bullishness for markets will occur. Bears must prevent 452.66 from printing.  UTIL now printing 452.12..........452.10..........

Note Added 2/2/12 at 11:28 AM:  The bulls could only push UTIL to 452.13 before the bears spanked the utes south. UTIL now printing 451.58 trying to launch another run upwards. Very simply, if the bulls move UTIL above 452.66, they win and markets will continue along bullishly. If the bears push CRB under 309.50, they win and markets will continue along bearishly.

Note Added 2/2/12 at 3:47 PM:  The utilities, UTIL, are losing steam and would fail a descending triangle base line if it loses 449.70, which would help the bear case.  SPX:VIX ratio is over 73 signaling that the market bulls are in full control. CRB made an attempt at 309.50 but recovered. Thus, the markets meander sideways ahead of tomorrow's all important Monthly Jobs Report before the opening bell.

Note Added 2/2/12 at 3:53 PM:  The utilities, UTIL, failed the descending triangle base line at 449.70 but there are only a few minutes remaining in the session.