Keystone's Midday Market Action 7/17/12

The NYA popped above 7748 at the bell providing the bull fuel. The SPX jumped over 1357 so that accelertated price to the 1361.32 HOD thus far.  Price received a spank down in quick order from this 1358-1360 resistance area, now more accurately 1358-1361 factoring in today's action, with the 100-day MA at 1359.63 and the 20-week MA at 1358.91. If the SPX moves thru 1361 today, then 1363.61 R is next and more likely a test of the strong 1366 R.  Whoopsies daisies. As this message is typed, NYA collapses thru 7748, the SPX is negative now.......

Note Added 7/17/12 at 10:04 AM: Note the market pivot as housing data hits as well as Chairman Bernanke preparing to speak.  JJC (copper) tumbles under 44.20, now under 44, another bearish indication.

Note Added 7/17/12 at 10:07 AM:  Bernanke says the economy continues to recover and does not appear to be pumping QE. Bernanke needed to deliver a pony but he did not even deliver a picture of a pony.  The dollar index catapults higher as would be expected since QE will not weaken the buck.  A higher dollar sends copper, commodities and equities lower.  Traders did not receive the news they expected. Ben laid an egg. The major indexes are red.

Note Added 7/17/12 at 11:17 AM:  Bernanke is tap dancing.  NYA and JJC are in the bear camp creating the market weakness.  Watch CRB 293.80, now on the cusp. If the CRB fails and the SPX moves back below 1345-ish it is likely that Keybot the Quant, Keystone's proprietary algorithm, will likely flip to the short side.  The heat and humidity is on the increase so it is time for Keystone to make the way up thru the hollow to the Fishing Hole for a swim to cool off.

Note Added 7/18/12 at 5:19 AM:  At 10 AM yesterday, traders did not receive the head nod for QE from Chairman Bernnke so markets plummeted.  The market down move did not last long since Bernanke then left the door open to QE.  Now you see it, now you don't. What a circus of a market; a casino that simply trades depending on whether or not Bernanke provides more sugar. Markets recovered the rest of the day.  Note how the CRB came down to test 293.80, exactly where it bounced, and the markets recovered.  How does Keystone know these numbers to watch ahead of time? Copper remains weak, the JJC is under 44.20. The NYA jumped above 7749 adding bull fuel. The SPX gained about 0.8% but the Nasdaq was only one-half that, therefore, the rally is suspect, tech was not leading the upside. Note how the SPX closed pennies above the 1363.61 number listed above. This number is important since it is the closing high for 2011. Also note how the SPX moved towards the strong resistance at 1366, which has held for now, once the 1358-1360 resistance gauntlet gave way.  A break of 1366 R will lead to the 1370's.  The SPX move yesterday places price at the top rail of the megaphone in yesterday's chart. Traders are obviously confused with Bernanke's comments, perhaps today will provide clarity. Housing Starts are uber importante.