Keystone's Midday Market Action 2/8/12

The market bulls need to see SPX 1349 and higher and the upside will accelerate.  Price just punched up thru, see if it holds, or not.  The bears need to lose 1336 to accelerate the downside and since 1337 is critical support, if that fails, 1336 will fail.  A move thru 1338-1348 is sideways action today.

CRB and UTIL have the same importance as yesterday.  If UTIL moves above 453.69, the market bulls will take markets another leg higher.  But, alas, price is drifting lower now, UTIL currently printing under 451.  If UTIL stays under 453.69, and CRB stays above 310.50, the markets will drift along sideways as they have the last few days, and so far today as well. If the CRB 310.50 level fails, the broad indexes will sell off substantially.  The dollar behavior is important since the commodities, CRB, move opposite the dollar.

So more sideways stuff so far today.  Market bulls need to punch thru 1349 and hold it for a few minutes to start a bullish acceleration higher. SPX is now coming up for another look...1348.91....

Note Added 2/8/12 at 9:51 AM: Big punch up and thru 1349 by the SPX now printing over 1350. See if the 1349 support holds in the minutes ahead, if so, the SPX is determined to test the uber strong resistance at 1354. This is a line in the sand for bears. If the SPX moves up thru 1354, that is a hugely bullish development. The SPX is up 0.21% and the Nasdaq is up 0.25% so tech is once again leading the upside, albeit slightly.  Bulls want this tech strength to continue, market bears want to see the Nasdaq percentage drop and lead lower.

Note Added 2/8/12 at 11:09 AM: Very interesting to see the SPX punch up thru 1349 but fail to immediately move up to test the 1354, therefore exhaustion may be here for markets, and a key reversal may occur today.  Minutes ago, the Nasdaq was tied or leading the downside so watch that, if tech leads lower markets will sell off. 

Note Added 2/8/12 at 12:18 PM: Nasdaq petering out again to the downside.  AAPL is the key, once it rolls over and heads lower, it takes tech down and that will take markets down. For today, AAPL is up another three bucks.  SPX moving sideways until a catalyst occurs.  The weakness in the broad indexes today occurred as uncertanty over the Greece deal surfaced.  This continued delay now runs directly into the ECB rate decision and press conference tomorrow, hours away, throwing a wrench into the whole works. The Greece deadlines slipping are starting to now impact other areas of Europe and that is not good.  Probably an eleventh hour agreement on tap just before the ECB talks. CRB at 314-ish now, watch the 310.50 which would signal bear happiness. Staying above 310.50 is bull happiness. China CPI will be big, only 8 hours away.