Keystone's Morning Wakeup 3/28/12

Durable Goods Orders laid an egg, futures are flatlining.  Last evening, Chairman Bernanke opines with ABC Network that the U.S. economy is not out of the woods yet.  Traders love this talk since it equates to an extra printing press coming on line so futures were strong overnight.  This morning markets are jumpy as a ping pong ball, futures dropping, then bouncing on positive FDO earnings, then dropping on Durable Goods. AAPL will offer refunds to Aussie buyers of the iPad3 due to the 4G claims.   The 4G is not compatible in Aussieland so some dough has to be returned to purchasers due to false advertising.

Copper is hit overnight, remember copper and commodities are the two key sectors that Keystone's algorithm is tracking currently.  Jiangxi Copper drops 6% overnight. China growth is weakening, even U.K. and France lowered growth forecasts this morning.  Watch JJC 49 level which will indicate broad market trouble and selling on tap.  This has a good chance of failing at the bell.  Also watch the CRB now only about a point from failing the important 312.30 level which will indicate market trouble ahead.

For the SPX today, starting at 1412.52, the bulls need to touch the 1419 handle and the markets will accelerate higher. The bears need to see price drop under 1412, that will signal the all clear for an accelerated down move.  A move thru 1413-1418 is sideways action. If either JJC loses 49, or CRB loses 312.30, and the SPX drops under 1412, Keybot the Quant, Keystone's algo shown in the left margin will probably move to the short side.  Oil Inventories are at 10:30 AM so the markets will pivot at that time and the 5-Year Note Auction is at 1 PM. RHT earnings are important today since it will affect the tech sector which has led the entire market rally. In a nutshell, JJC 49, CRB 312.30 and SPX 1412 will dictate market direction.