Keystone's Midday Market Action 4/9/13

The semiconductors are key today. After a wrestling match above and below SOX 423.90, the bulls rammed the semi's higher creating the fuel for the broad indexes. SOX is now printing over 429, moving from 423 to 429 in only about 90 minutes time. Keybot the Quant flips long at SPX 1568. Stay alert for a whipsaw especially in these erratic markets. The SPX is now printing 1572. The bulls push up through 1565 resistance, then 1569 R, then the all-time closing high at 1570.25. So a new all-time closing high will be printed today if the 1570.25 holds. Price also ran through the 1571 resistance and the next level is the intraday high for 2013 and previous week's high at 1573.66. If 1573.66 gives way, price will attempt to print a new all-time high above 1576.09. The HOD is 1572.35 so watch this number closely. The SPX Benchmark index is now up 10% this year in three short months.

VIX drops under 13 now at 12.85. Copper receives a bounce today with JJC now printing above 43. TRIN is 0.78 supplying more bull fuel. This is two days in a row with low TRIN numbers so the markets will need a pull back to rectify this uber bullishness. The high +1000 TICK occurs at 1:15 PM. The SPX is printing higher highs since then with lackluster TICK's.  Volume is below average again, like yesterday, at a run rate of only two-thirds of an expected days volume. The NYHL is up today but less new highs are printed as the SPX continues to print new highs.  The upside orgy in utilities continues with UTIL now printing over 419. The 10-year yield is 1.74% not showing a rotation from bonds to stocks. Thus, the Fed and BOJ easy money is pumping the markets.

The SPX daily, hourly and minute charts, in general, are in or approaching overbot territory with negative divergences setting up or already in place. The remainder of today and the next couple days will be interesting. The tight Bollinger Bands highlighted this morning are squeezing the move out to the upside. The euro is at 1.3091 just shy of 1.31 which was tagged earlier today. Gold is 1585.  WTIC crude oil is 94.16. To add even more drama, the new moon is in place at about 5:30 AM EST and markets are typically weak moving through the new moon. Time for a slice of apple pie to ponder the wild action.

Note Added 2:33 PM:  SPX is punching out a new HOD at 1572.62. Dow is printing new all-time highs. TRIN is 0.73. VIX is 12.91. SOX is 429.78.

Note Added 2:44 PM:  Markets are melting-up. SPX now moves above last week's high and the intraday high for 2013 at 1573.66. The HOD is 1573.82 creating a new intraday high for 2013. There is no stopping the bulls. Shorts are throwing in the towel adding more upside fuel. The all-time SPX high at 1576.09 is only a couple points away.

Note Added 4:04 PM:  The SPX drifted lower into the closing bell from the last update.  The SPX prints a new intraday high for 2013 at 1573.89, however, the SPX could not print a new all-time closing high above 1570.25 and could not print a new all-time intraday high above 1576.09. The SPX finishes with a 1568 handle where Keybot flipped long earlier today. VIX moved back above 13 but it was kicked back under at the close. VIX continues to create market bullishness. SOX finishes at 428.14 well above 424 so the bulls are happy. TRIN closes at 0.77 with two very low closing prints in a row.

Note Added 8:41 PM:  The CPC put/call ratio signals a significant market top in place now. Reference this evening's article.  Interestingly, the new moon hits at 5:30 AM EST, and the markets are typically weak through the new moon. The new moon signals the darkest night of the month so military operations typically begin under a new moon (think North Korea). Also, Keystone's Eclipse Indicator, posted last evening, identifies the days ahead as having potential for a significant market selling event.  Exciting times, the remainder of the week may prove quite dramatic for markets.