Keystone's Midday Market Action 1/14/13; Chairman Bernanke Speaks After the Close

The overnight session was bullish into the morning on the East Coast.  The WSJ says that iPhone orders are getting cut on weak demand. This news punched the markets in the stomach and occurs only seven trading days away from the AAPL earnings on 1/23/13.  Apple lost the 500 level today now exploring levels not seen since about one year ago in February 2012. The recent low close was 509 so watch to see if Apple can close above, or not.  Also, the LOD is 498.51, now printing 505. Oil and copper were up strongly overnight and as the rooster crowed here this morning but alas, oil, both Brent and WTIC, have drifted lower ever since, WTIC had dropped under 93, Brent is at the important 110 pivot and copper has turned negative, a big plus for bears. Watch JJC 45.65 (instead of the 45.55 mentioned on the weekend, these numbers are continuously changing in real-time), and at 45.90 right now, is approaching the dangerous bull-bear line which would provide bear fuel. Above JJC 45.65 and bulls are fine. The SPX held the 1472 resistance, then ventured lower to test the 1468 support, and failed, which immediately sent price to 1465. A back kiss of 1468 is occurring now so price can decide if it wants to move back up into the 1468-1472 channel, or, collapse. Bounce or die. The 8 MA is converging on the 34 MA on the SPX 30-minute chart but for now the bulls maintain control.

Tech is leading the broad indexes lower which is bearish. The 10-year yield is trailing lower to 1.84% and it was lower early this morning providing a hint that weaker equities may be on the table today. The euro drifts up but unconvincingly so, now at 1.3367. The president speaks at 11:15 AM.  Chairman Bernanke speaks at 4:30 PM EST today and will be taking questions.  The AH's, futures and currency markets can react but the regular trading will not be able to respond until tomorrow morning.

Note Added 1/14/13 at 12:32 PM:  The SPX is traveling across the strong 1468 S/R deciding on a direction.  The president provided the same ongoing line that he will not negotiate over the debt ceiling and if something happens it will be the republicans fault. Nothing new. Both sides are starting the baby talk again. An interesting comment was when the president referred to himself as a  'big spending socialist' (in the context of what others say about him), and then appeared to immediately catch himself realizing that description does not help his case. Markets are sideways and unresponsive during the speech and Q&A.  JJC is 45.85 only twenty cents away from the bull-bear line; copper is very important moving forward. The 10-year yield is 1.86% as the markets move sideways. The euro is 1.3359.  Watch the 8 and 34 MA cross on the 30-minute, looks like she wants to cross within the next half hour.

Note Added 1/14/13 at 1:05 PM:  The 8 MA just stabbed down thru the 34 MA on the SPX 30-minute chart signaling bearish markets for the hours and days ahead. Watch this thru the close to see if the bears maintain control. JJC is 45.80 now only fifteen cents from the bull-bear line at JJC 45.65 which will create a strong down leg in the broad markets.

Note Added 1/14/13 at 1:37 PM:  The bulls are pushing the 8 MA back above the 34 MA on the 30-minute chart to signal the bulls in charge for the hours and days ahead. Quite a drama ongoing. This 8 and 34 MA cross will tell a lot about market direction today. The fight will continue into the close; the 8 MA is 1468.48 and the 34 MA is 1468.46 so the bulls are winning by two pennies. Markets continue sideways.

Note Added 1/14/13 at 1:51 PM:  For Pete's sake, now the bears have pushed the 8 MA back under the 34 MA to signal bearish markets for the hours and days ahead. There is a lot at stake for this 8 and 34 MA cross today, hence, the knock-down drag-out fight. AAPL at 501, all heck may break loose if price breaks 500.  JJC is 44.84.  VIX remains low at 13.55.

Note Added 1/14/13 at 2:13 PM:  An up surge occurs in the broad indexes on news that DELL may be bought-out. The 8 MA is back above the 34 MA signaling bullish markets for the hours and days ahead. This is quite a game of ping pong with the 8/34 MA cross. AAPL had a 500 handle and the market pump saved it from failing, now printing over 503. Oil is up.

Note Added 1/14/13 at 4:05 PM:  The bears came to play today but the bulls put up a fight and live to fight another day.  The 8 and 34 MA cross remains in the bulls favor but the battle will pick up again tomorrow.  The euro is 1.3378, the buoyancy today pushes equities higher. WTIC oil is 94.15 back up and over 94 which helped the bulls in the afternoon.  Brent oil is 111.85.  JJC is 45.90.  AAPL finishes at 501.80 placing the lowest closing print since February 2012 eleven months ago.  The LOD at 498.51 printed after the opening bell held today and requires watching tomorrow. Chairman Bernanke is on deck.