Keystone's Morning Wake-Up 12/20/12; GDP; Existing Home Sales; Fiscal Cliff

Make amends since, according to Mayan prophecy, the world ends tomorrow. The 10-year yield is 1.77%. The euro is 1.3246.  Brent is 110. The BOJ did not ease to the extent expected so the overnight futures are flat to negative. Over the last hour the Nasdaq is moving to the plus camp. Confidence in a fiscal cliff resolution is fading.  The House is voting on Plan B today and as Speaker Boehner said in a terse two-minute press conference yesterday, 'the bill will make permanent the tax cuts in place for over 99% of the population, the president must decide if he plans to create the largest tax increase in history'.  Them's fightin' words. The fiscal cliff tension increases.

Copper is weak again today and this is a very negative market sign.  Watch JJC 45.46 today, the current print is 45.45 a single hair on the bear side which creates market negativity. Very simply, the markets will go up if JJC moves above 45.46 and the markets will sell off if the JJC remains under 45.46 and heads lower.  For the SPX today, starting at 1436, the bulls need to touch 1448 to ignite an upside acceleration. The bears have an easy road, only needing to see negative futures since this will create a downside acceleration at the opening bell. A move thru 1437-1447 is sideways action today. Keystone's trading algorithm, Keybot the Quant, is long moving into the opening bell, however, the algo wants to flip short currently.  If the SPX drops under 1436 and remains under for several minutes, Keybot the Quant will likely flip short.

Jobless Claims and GDP at 8:30 AM.  Philly Fed, Existing Home Sales, FHFA House Price Index and Leading Indicators all at 10 AM so expect a market pivot point. Housing is key today with KBH earnings also on tap. NKE and RIMM report today. CTAS earnings provide insight into the economy since lots of uniform usage indicates a strong manufacturing sector. DRI earnings will indicate consumer discretionary spending. Are folks eating out or staying home eating franks and beans? In a nutshell, watch JJC 45.46 as a key market barometer, also, SPX 1436 and lower will likely cause Keybot the Quant to turn bearish.